China Files WTO Complaint as Trump's Tariff Takes Effect

Shippers, retailers in confusion over end of duty-free exemption for low-value packages

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WASHINGTON - China filed a World Trade Organisation (WTO) complaint on Feb 5 against US President Donald Trump's new 10 percent tariff on Chinese imports and his cancellation of a duty-free exemption for low-value packages, arguing that the actions are "protectionist" and break WTO rules.

Beijing's request for US trade consultations came as confusion reigned among shippers and retailers over Mr Trump's closure of the "de minimis" exemption for package imports valued under US$800 (S$1,080) and widely used by e-commerce firms including Shein, Temu and Amazon.

A US Customs and Border Protection official said all small packages from China and Hong Kong needed to have Customs entries on file prior to arrival, and there was the potential for some cargo to be sent back without this paperwork.

The WTO said China submitted a request for consultations with the US on the tariffs.

China argues in the document that Mr Trump's new duties aimed at halting the flow of fentanyl opioids and their precursor chemicals to the US "are imposed on the basis of unfounded and false allegations concerning China".

It said the duties are discriminatory, applying only to goods of Chinese origin, and are inconsistent with America's WTO obligations.

The request for consultations is the start of a dispute process that could lead to a ruling that Mr Trump's duties violated trade rules in the same manner that a 2020 WTO ruling found that his first-term China tariffs broke trade regulations.