China has officially filed a complaint with the World Trade Organization (WTO) against the new 10% tariff imposed by former U.
S. President Donald Trump on Chinese imports, along with his decision to cancel a duty-free exemption for low-value packages. Beijing argues that these actions are protectionist and violate WTO regulations.
The move comes amid growing uncertainty among retailers and shipping companies following Trump’s removal of the "de minimis" exemption, which previously allowed packages valued under $800 to enter the U.S. duty-free. This exemption was widely used by e-commerce giants like Shein, Temu, and Amazon.
A U.S. Customs and Border Protection official has stated that all small shipments from China and Hong Kong must now have customs entries filed before arrival. Failure to comply could lead to some cargo being returned.
China Challenges U.S. Trade Policies at the WTO
China claims that Trump’s new tariffs are unjustified and discriminatory, targeting only Chinese goods under the pretext of stopping fentanyl shipments to the U.S. The complaint argues that these measures breach WTO obligations, similar to a 2020 WTO ruling that deemed Trump’s first-term tariffs illegal.
However, while China may win the case, the U.S. has effectively blocked the WTO’s Appellate Body by refusing to appoint new judges, making enforcement unlikely.
U.S. Postal Service Reverses Ban on Chinese Packages
Meanwhile, the U.S. Postal Service has announced it will resume accepting parcels from China and Hong Kong after a temporary suspension threatened to disrupt millions of daily shipments. The agency is now working with U.S. Customs and Border Protection to develop an efficient tariff collection system to avoid major delivery disruptions.
With retailers scrambling to adjust to the new rules, Hurricane Commerce co-founder Martin Palmer described the situation as chaotic, saying, "We’re all running around like headless chickens, trying to second-guess what’s going to happen."
The de minimis exemption has long been criticized for enabling drug traffickers to smuggle fentanyl into the U.S. Trump’s administration blamed the loophole for the influx of illegal opioids, a claim backed by recent Reuters investigations.
As tensions between China and the U.S. continue to escalate, this latest trade dispute signals another round of economic and political friction between the two global superpowers. Stay tuned for more updates on this developing story!
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