China lodged a complaint with the World Trade Organization (WTO) on Wednesday against US President Donald Trump’s new 10% tariff on Chinese imports and the removal of a duty-free exemption for low-value packages, arguing that the measures are “protectionist” and violate WTO rules.
Beijing’s request for trade consultations came amid growing confusion among shippers and retailers following Trump’s decision to eliminate the “de minimis” exemption, which had allowed packages valued under $800 to enter the US duty-free. The exemption had been widely used by e-commerce companies such as Shein, Temu, and Amazon.
A US Customs and Border Protection official stated that all small packages from China and Hong Kong now require customs entries before arrival, warning that some cargo could be returned if the necessary paperwork is not completed.
The WTO confirmed China’s request for consultations with the US regarding the tariffs. In its filing, Beijing argued that Trump’s new duties, which the administration says are intended to curb the flow of fentanyl and its precursor chemicals into the US, are based on “unfounded and false allegations concerning China.” China also claimed the tariffs are discriminatory as they apply exclusively to Chinese-origin goods, violating WTO obligations.
The consultation request marks the beginning of a dispute process that could lead to a ruling against Trump’s tariffs, similar to a 2020 WTO decision that found his first-term China duties violated trade rules.
However, any victory for Beijing is unlikely to bring relief, as the WTO’s Appellate Body has been largely inoperative due to US opposition to appointing appellate judges, preventing a final resolution in trade disputes.
Meanwhile, the US Postal Service (USPS) announced on Wednesday that it would resume accepting parcels from China and Hong Kong, reversing a temporary suspension that had threatened to disrupt millions of daily package deliveries.
“We’re all running around like headless chickens at this moment in time, trying to second-guess what’s going to happen,” said Martin Palmer, co-founder of Hurricane Commerce, a cross-border e-commerce data provider. “And in two weeks’ time, we may be back to normal.”
The Trump administration has blamed the de minimis exemption for enabling fentanyl and its chemical precursors to enter the US undetected. Reuters has also reported that drug traffickers have exploited the exemption to smuggle illegal substances.
In response to the new tariffs, USPS stated it is working with US Customs and Border Protection to implement an efficient collection system to minimise disruptions to deliveries.
Faridah Abdulkadiri
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