China has filed a World Trade Organization (WTO) complaint against the US, arguing that President Donald Trump’s 10% tariffs on Chinese imports and cancellation of a duty-free exemption for low-value packages are “protectionist” and break WTO rules. Beijing’s request for US trade consultations came as confusion reigned among shippers and retailers over the new tariffs.
The WTO said China submitted a request for consultations, citing that the duties imposed by Trump aim to halt the flow of fentanyl opioids and their precursor chemicals to the US but are “imposed on the basis of unfounded and false allegations concerning China.” The US Customs and Border Protection agency warned undocumented packages may be turned back without proper customs entries.
US Postal Service officials have reversed a temporary suspension, allowing parcels from China and Hong Kong to continue arriving. However, shippers and retailers expressed concerns about the increased scrutiny and potential for package delays due to individual clearances required under the new tariffs. The move has sparked chaos among the retail and shipping sectors.
The US Treasury Secretary defended Trump’s tariff strategy, saying it aims to bring manufacturing back to the US. However, US Federal Reserve officials pointed to policy uncertainty around tariffs as a top challenge in determining monetary policy.
Source: https://www.reuters.com/world/china-challenges-trump-tariffs-wto-package-shippers-warn-chaos-2025-02-06