China files complaint to WTO over Trump’s tariffs

• Published On: 06 February 2025 at 20:19

China has filed an official complaint with the World Trade Organization against United States President Donald Trump's new 10% tariff on Chinese imports, claiming that the move is protectionist and violates WTO rules.

The complaint, filed on Wednesday, also challenges the revocation of a duty-free exemption for low-value packages, a move that has disrupted supply chains and perplexed retailers.

Beijing has requested consultations following the abrupt closure of the "de minimis" exemption, which allowed packages under $800 to enter the United States duty-free.

E-commerce behemoths such as Shein, Temu, and Amazon have relied on this provision for cross-border shipping. According to a US Customs and Border Protection official, all small packages from China and Hong Kong must now have customs entries prior to arrival, which may result in cargo being returned.

The WTO confirmed receiving China's request, claiming that the tariffs are based on "unfounded allegations" about China's involvement in the fentanyl opioid crisis.

Beijing claims that the duties are discriminatory and violate WTO agreements. This dispute may result in a ruling against the tariffs, as seen in a 2020 case, but enforcement is uncertain due to the US blocking WTO judge appointments.

Despite trade tensions, the United States Postal Service has resumed accepting parcels from China after a brief suspension. Meanwhile, China has retaliated by imposing tariffs on US coal, LNG, crude oil, and farm equipment, as well as opening an anti-monopoly investigation into Google.