European finance ministers agreed on Thursday to bring forward to next year customs duties on low-value parcels arriving in the bloc to crack down on cheap Chinese e-commerce imports, in a move set to hit Chinese online retailers Shein and Temu.
The agreement to introduce duties as soon as possible in 2026 by finance ministers meeting in Brussels sets up negotiations with the European Parliament, whose approval is also required.
The European Union is trying to act faster as concern grows over Chinese goods being dumped in Europe.
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The agreement was welcomed across Europe.
“Ending the exemption will close long-standing loopholes that have been systematically been exploited to avoid customs duties,” Denmark’s economy minister Stephanie Lose told a news conference.
German online retailer Zalando, among those pushing the EU to act, said in a statement that the removal of the exemption should be fast-tracked.
Sweden’s retail industry association and Germany’s e-commerce association separately said the finance ministers’ agreement was a first step towards making competition more fair.
Luca Sburlati, chairman of Italy’s fashion lobby Confindustria Moda, said the taxation of parcels under €150 is “essential for the survival of our textile and clothing sector”.
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Shein declined to comment, while Temu, AliExpress, and Amazon did not immediately respond to requests for comment. Shein is facing legal proceedings in France over the sale of child-like sex dolls on its platform.
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There are many reports by consumer protection agencies across Europe and the world on toxic and dangerous products sold on Temu, Shein & Co (one is here, and, no, Chinese companies have their own supply chains and their own sweatshops, European companies that sold these unsafe products would immediately be closed by the authorities).
[Edit to insert the correct link.]
How does higher taxes solve this problem?
Making not that convenient to buy from them, for example. Temu & Co only sell so much only because they have lower price.
The right solution would be to force them to not sell toxic and dangerous products, but since that it is almost impossible the next best option is making them not convenient (or less convenient).
What would you suggest instead?