The Hong Kong Special Administrative Region government is preparing to file a complaint to the World Trade Organization regarding the imposition of additional 20 percent US tariffs on products of Hong Kong, which it says undermines the rule-based multilateral trading system.

“We are now mapping out the strategy and taking forward the relevant work progressively,” Acting Secretary for Commerce and Economic Development Dr Bernard Chan Pak-li said on Wednesday in a written reply to a related query in the Legislative Council.

The time required for handling individual WTO dispute cases depends on various factors such as the complexity of the case and progress of consultations between the disputing parties, he said, adding that the time required is generally measured in years.

Effective from Mar 4, US President Donald Trump initiated a second round of tariffs, which includes additional 10 percent duties on Chinese goods to the US — including imports from the HKSAR. The move followed earlier 10 percent tariffs imposed on Feb 4, bringing the cumulative duty to 20 percent.

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The imposition of additional tariffs is grossly inconsistent with WTO rules and ignores Hong Kong's status as a separate customs territory as stipulated in Article 116 of the Basic Law and recognized by the WTO, Chan said at the LegCo.

The additional US tariffs would “inevitably affect export of Hong Kong products to the US, particularly in the short term”, but would have a limited impact on the SAR’s overall merchandise trade, he said.

Pointing out that the domestic exports value of Hong Kong products to the US is relatively small in terms of the SAR’s total trade value, he said the domestic exports value of relevant products to the US was about HK$5.9 billion in 2024, accounting for about 0.1 percent of the city’s total exports value and about 0.06 percent of Hong Kong's total trade value.

“On the other hand, Hong Kong enterprises have responded to market changes through various arrangements, such as reintegrating supply chains, and exploring different emerging markets as well as different means including e-commerce in recent years,” he said.

The measures would offset the possible impact brought about by the US tariffs to a certain extent, he added.

As the founding member of the WTO, Hong Kong has been a staunch supporter of a rule-based multilateral trading system and one of the most open economies welcoming trade and investments, and has never imposed any tariffs on imported goods, Chan pointed out.

“To tackle unfair trade practices targeting Hong Kong and in light of the evolving international trade landscape, the HKSAR government has been actively expanding the economic and trade network and exploring development opportunities in markets with potential, especially emerging markets.”

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Speaking on a Commercial Radio program on Mar 22, Secretary for Commerce and Economic Development Algernon Yau Ying-wah accused the Trump administration of violating WTO agreements, which state that the SAR is a separate customs territory.

"The executive orders of the US government noted that they are imposing new tariffs on goods from mainland China. But the Department of Homeland Security and Customs said the rule includes products of Hong Kong. This is a violation of the WTO agreement, and it is completely wrong to mingle Hong Kong goods with those of China," he said.