Hong Kong is set to file a complaint with the World Trade Organization (WTO) over newly imposed US tariffs, following China’s retaliatory tariffs on American goods.
On Tuesday, Hong Kong’s Chief Secretary Eric Chan stated that the city would take action against the US for “completely ignoring” Hong Kong’s status as a separate customs territory.
The dispute began last week when US President Donald Trump imposed a 10% tariff on Chinese imports, prompting Beijing to retaliate with tariffs on US goods.
China’s 15% tariffs on coal and liquefied natural gas, as well as a 10% levy on oil and agricultural equipment, took effect on Monday.
Beijing has already filed its own complaint with the WTO, asserting that US tariffs violate international trade rules.
Chan argued that the US tariffs were “absolutely inconsistent with WTO rules” and that the US had completely disregarded Hong Kong’s special customs status.
He confirmed Hong Kong would file a complaint, although he did not provide a timeline, citing the unpredictable nature of such policies.
Hong Kong, operating under the “one country, two systems” principle, is allowed to maintain a distinct customs system within China.
However, following the imposition of a national security law on the city in 2020 and a crackdown on dissent, the US revoked Hong Kong’s special status, heightening tensions with China.
The US had previously mandated that goods from Hong Kong, when exported to the US, be labeled as originating from China, removing one of Hong Kong’s competitive advantages.
The US Postal Service recently suspended, and then reversed, a decision to halt all mail and packages from China and Hong Kong, causing disruption among retailers and shipping firms.
Trump’s latest move also closed the “de minimis” duty exemption for packages valued under $800, a measure seen as targeting the flow of precursor chemicals for fentanyl production.
The WTO complaint filed by China accuses the US of making “unfounded and false allegations” about China’s role in fentanyl trafficking, asserting that the tariffs are “discriminatory and protectionist,” and thus violate trade rules.
China’s WTO consultation request has triggered a dispute process, which could lead to a ruling similar to the one in 2020 when the WTO found that Trump’s China tariffs violated trade regulations.
However, such a ruling is unlikely to bring relief to China, as the WTO Appellate Body has been largely paralyzed due to the US blocking the appointment of new judges, preventing final decisions on past cases.
