Hong Kong authorities have said they will complain to the World Trade Organization (WTO) over the US’s imposition of additional tariffs on the city’s goods.
Last Saturday, US President Donald Trump’s executive order slapped an additional 10 per cent levy on mainland Chinese and Hong Kong products. Hong Kong authorities say Washington ignored the city’s status as a separate customs territory.
“The US’ measures are grossly inconsistent with the relevant WTO rules and ignore our status as a separate customs territory as stipulated in Article 116 of the Basic Law and recognised by the WTO,” a government spokesperson said in a Friday press release. “The HKSAR Government will formally launch procedures in accordance with the WTO Dispute Settlement Mechanism against the US’ unreasonable measures to defend our legitimate rights.”
They added that Hong Kong respects the rule-based multilateral trading system, as authorities urged Washington to “rectify its wrongdoing.”
China responded to the US tariffs on Tuesday with a 15 per cent levy on American coal and liquefied natural gas products from next Monday, alongside a 10 per cent levy on crude oil, agricultural machinery and large-engine cars from the US.
Hong Kong is a founding member of the intergovernmental trade organisation, which was formed in 1995 to establish and enforce rules governing international trade. Headquartered in Switzerland, China joined the WTO in 2001, though has long been accused of failing to adhere to its rules.
Last year, the WTO said there was an “overall lack of transparency on China’s government support” of private enterprises, according to Bloomberg. Since its ascension, it has also faced criticism over market access restrictions, intellectual property theft, export restrictions and currency manipulation.
In July 2020, during his first term in the White House, Trump signed an executive order shortly after Beijing imposed a national security law in Hong Kong that June. The US had treated Hong Kong separately from mainland China in matters of trade and economy since 1992, but Trump’s order suspended Hong Kong’s special status.
Postal services debacle
On Thursday, the government said that Hong Kong had maintained close economic interactions with the US. In 2023, the US was the city’s third largest trading partner, with the total merchandise trade value amounting to US$60.3 billion (HK$469.2 billion).
Later that day, Hong Kong’s commerce chief Algernon Yau said in Cantonese that the tariff policy “not only fails to meet the standards of the WTO, it also harms the interests of different parties, including the US.”
On Wednesday, the US Postal Service announced it would resume accepting packages from China and Hong Kong, hours after the service was temporarily halted. The suspension came after a “de minimis” allowance – which exempts small packages worth under US$800 (HK$6,230) from US duties – was revoked under Trump’s tariffs. Nevertheless, Hongkong Post said on Friday that it would continue the suspension of certain postal services to the US whilst the levy situation was clarified.
