Hong Kong has announced plans to file a complaint with the World Trade Organization (WTO) over new U.S. tariffs, arguing that the measures violate global trade rules and disregard Hong Kong’s status as a separate customs territory. Chief Secretary Eric Chan stated, “This is absolutely inconsistent with WTO rules. Of course, they have totally disregarded Hong Kong as a separate customs territory.” The move escalates trade tensions between the U.S. and Hong Kong, which have worsened since China’s imposition of a national security law on the city in 2020.
The U.S. tariffs, introduced under President Donald Trump’s administration, impose a 10% duty on goods from Hong Kong. This is part of a broader strategy targeting Chinese imports, as the U.S. seeks to counter Beijing’s influence in global trade. The administration also closed the “de minimis” duty exemption for packages valued under $800, aiming to curb the flow of fentanyl and its chemical precursors from China and Hong Kong into the U.S. While U.S. officials argue these steps are necessary for national security and economic protection, Hong Kong contends they are politically motivated and unfairly punitive.
The tariffs have created confusion for businesses and shipping firms, disrupting trade operations between Hong Kong and the U.S. The U.S. Postal Service temporarily halted inbound mail from China and Hong Kong, citing customs concerns. The suspension caused major delays before the service was restored. Retailers have also reported increased costs due to the new tariffs, adding pressure to global supply chains.
Hong Kong’s status as a separate customs territory has been recognized by the WTO since 1995, allowing it to negotiate trade agreements independently of mainland China. However, the U.S. revoked Hong Kong’s special trade privileges in 2020, following Beijing’s crackdown on pro-democracy activists. As a result, goods exported from Hong Kong to the U.S. must now be labeled as “Made in China,” a move that Hong Kong officials say undermines their economic autonomy.
If Hong Kong proceeds with its WTO complaint, the case could take months or even years to resolve. While the WTO has ruled against similar U.S. trade measures in the past, enforcement remains uncertain, as the U.S. has often challenged WTO decisions it deems unfavorable. The outcome of this dispute will likely influence broader U.S.-China trade relations, shaping future economic policies between the two powers.
