Hong Kong will file a complaint with the World Trade Organization (WTO) regarding recent US tariffs imposed on the city, with officials arguing that the United States has completely disregarded Hong Kong’s status as a separate customs territory, according to Chief Secretary Eric Chan on Tuesday.
“This is absolutely inconsistent with the WTO rules. Of course, they have totally disregarded that Hong Kong is a separate customs territory,” Chan, the second-highest official in the China-ruled city, told reporters.
“We will file a complaint to the WTO regarding this unreasonable arrangement,” he added, though he did not provide further details.
Chan’s remarks came in response to a US decision to impose 10% tariffs on goods from Hong Kong as part of President Donald Trump’s strategy to target Chinese imports.
In addition, last week, the US Postal Service suspended all inbound mail and packages from China and Hong Kong, before reversing the decision shortly thereafter. This move caused confusion and chaos among retailers and express shipping firms, who struggled to navigate the new tariffs.
“All I can say is the policies are mercurial,” Chan commented.
Trump’s action also involved closing the “de minimis” duty exemption for packages valued under $800, citing concerns over the flow of fentanyl and precursor chemicals into the United States.
While Hong Kong has traditionally been known as a free and open trading hub, tensions with the US escalated after China imposed a sweeping national security law in 2020, which led to the US ending Hong Kong’s special status under US law. Following this, the US required that goods made in Hong Kong for export to the US be labeled as made in China, effectively ending one of Hong Kong’s competitive advantages as a global trading hub.