Brussels

Shein and Temu: EU ready for new tariffs on low-cost products

The EU tries to lower the exemption threshold (currently set at EUR 150) to curb the Chinese boom

2' min read

2' min read

The European Union is working on a law that would impose import duties on low-cost goods purchased from online platforms outside the European market. A move - the one anticipated by the Financial Times - that would mainly target Chinese retailers such as Temu, AliExpress and Shein, authentic protagonists of sectors such as eCommerce and fast fashion thanks to their products sold for a few euros.

The rules in Europe currently provide for a EUR 150 duty-free threshold for online purchases, intended for small gifts or personal packages. A threshold that allowed platforms such as Shein and Temu - whose pollutants are another big chapter in this story - to grow dramatically in the EU market.

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The proposal to lower the EUR 150 threshold would aim to stem this flow and would apply to all non-EU eCommerce platforms, according to rumours.

Indiscretions that have not yet been confirmed by Brussels, but which seem to outline a now necessary strategy.

Pending whether there will be majority consensus among member states to act, the effort adds to the growing momentum of protectionism against Chinese companies whose cheaper products threaten local manufacturers. This month, Europe will also introduce provisional tariffs of up to 38% on Chinese electric vehicles. The package could soon be joined by a new regulation on cheap imports.

And if Europe acts along these lines, even in the United States - which has a similar duty exemption for low-value personal parcels - several bills are under consideration in Congress to close or lower the threshold on imports, somewhat as could happen in Europe.

In both the US and Europe, the rise of these platforms (from Shein to Temu) coincided with the rise of inflation. Above all, the rise of Shein - which is now a fast fashion giant - has taken market share away from European retailers such as Hennes & Mauritz AB and Zara. European protectionist measures could bring the market back into balance.

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