China Hits Back: Files WTO Complaint Over U.S. Tariffs and Trade Crackdown

China has filed a complaint with the World Trade Organization (WTO) against U.S. President Donald Trump’s new 10% tariffs on Chinese imports and the cancellation of a duty-free exemption for low-value packages. Beijing argues that these measures are protectionist and violate WTO rules.

The exemption, known as the "de minimis" rule, previously allowed imports under $800 to enter duty-free. Its removal has caused confusion among retailers and e-commerce firms like Shein, Temu, and Amazon. U.S. Customs and Border Protection now requires all small packages from China and Hong Kong to have customs entries filed before arrival, potentially leading to cargo being returned if paperwork is incomplete.

China contends that the tariffs, aimed at restricting fentanyl and its precursor chemicals, are discriminatory and inconsistent with WTO obligations. While a WTO ruling could favor China, the organization's Appellate Body remains stalled due to U.S. opposition, limiting enforcement of any decision.

Meanwhile, the U.S. Postal Service has resumed accepting parcels from China after a brief suspension. The abrupt policy shift has left businesses scrambling for clarity. Supply chain experts warn that requiring individual clearances for de minimis shipments could significantly burden postal services and customs agents, disrupting global trade.

Trump has shown no urgency to discuss the tariffs with Chinese President Xi Jinping, despite Beijing’s retaliatory measures, including tariffs on U.S. coal, LNG, crude oil, and farm equipment, as well as an anti-monopoly probe into Google.

U.S. Treasury Secretary Scott Bessent defended the tariffs as a strategy to bring manufacturing back to the U.S. However, Federal Reserve officials warn of potential inflationary effects, adding to economic uncertainty as businesses and policymakers navigate the evolving trade landscape.