Ecofin taxes low-cost parcels: step forward against ultra fast fashion

The EU economics ministers, meeting at the Ecofin, approved the measure abolishing exemptions on tariffs for parcels purchased from non-EU platforms with a value of less than EUR 150. The entry into force of the measure, initially scheduled for 1 January 2028, should be brought forward to 2026, as requested by countries including Italy and France. "It is a positive agreement, Italy has always supported this measure, one of the first in line with the discussion on unfair competition that took place yesterday at the Eurogroup," Economy Minister Giancarlo Giorgetti said.

The measure, which could bring an 'extra amount' of one or two euros per parcel, was especially supported by Italy and France, two of Europe's best-known fashion manufacturers, because it should help to counter the phenomenon of ultra fast fashion, i.e. the sale of very cheap products through ecommerce platforms based in the Far East (including Shein and Temu). According to the European Commission, which had already sent a recommendation to the co-legislators on this subject in February 2025, more than 90 per cent of the 4.6 billion low-value parcels arriving in Europe during 2024 would have come from China. The number of ultra-low-cost purchases, due to growing economic difficulties but also to the strong popularity on social media, has grown exponentially in recent years: in 2023 there were 2.4 billion and in 2022 1.4 billion. Europe is not the only market of choice for the Chinese platforms of ultra-low-cost products that have been depopulated in the US for years. Also with a view to curbing the phenomenon, in August 2025 the Trump administration abolished the de minimis exemption enjoyed in the US by parcels worth up to USD 800.

Ecofin's decision - strongly requested by the associations of Italian fashion companies, from Confindustria Moda to the National Chamber of Italian Fashion - was widely welcomed. According to Luca Sburlati, President of Confindustria Moda, the taxation "is crucial for the resilience of our textile and clothing sector both in the European Union and the Italian government. We have to charge tariffs and customs: in a world where everyone is raising barriers, we are the only 'jerks' who let in low-end stuff without having tariffs. It seems crazy to me,' the entrepreneur said on the sidelines of the Pambianco-Pwc conference. The president of the National Chamber of Italian Fashion, Carlo Capasa, pointed out that 'even the rules of sustainability are not observed by those who produce these packages. So we ask that they at least be taxed for the time being, but that they cannot be advertised in a misleading way and above all we ask that the element of potential danger be indicated on the products, as they are not subject to those ESG rules to which our products are subject instead'.

The battle against ultra fast fashion will also be waged at national level. Mimit had in fact included among the amendments to the Ddl Concorrenza a package of regulations (including the extension of producer liability and the registration of large digital platforms) aimed at hitting players such as Shein and Temu. The measure, however, reached the Chamber in its original text due to the lack of agreement in the Industry Committee and after initial approval in the Senate, it is now in the Chamber. The owner of Mimit, Adolfo Urso, said that 'We have prepared a set of measures, developed with the associations of the fashion system, which will soon be submitted to Parliament for examination'.