World

EU Battles Chinese E-Commerce: How New Tariffs Aim to Protect Businesses and Consumers

EU states agreed to end duty exemptions for low-value online orders to combat unfair competition from China.

November 14, 2025, 10:09 AM

Smartphone screen displaying the Shein and Temu e-commerce app logos against a waving EU flag backdrop.

A mobile phone displays the logos of Chinese e-commerce apps Shein and Temu against the European Union flag. By Markus Mainka / Shutterstock.com.

Executive Summary

EU member states agreed to eliminate the bloc-wide duty exemption for low-value online orders, primarily targeting inexpensive Chinese imports from platforms like Temu and Shein.

The decision aims to address concerns over unfair competition and product non-compliance, protecting European businesses and consumers.

Member states are pushing for the implementation of this change as early as the beginning of next year, significantly sooner than the initially projected 2028.

The Story So Far

The European Union is moving to eliminate its duty exemption for low-value online orders because the current policy, which exempts packages under €150, has led to a significant influx of inexpensive imports, primarily from China. This has created concerns among European retailers about unfair competition from overseas platforms like Temu and Shein, which they claim often do not comply with EU product regulations, prompting the bloc to act to protect its businesses, consumer standards, and economic sovereignty.

Why This Matters

The European Union’s agreement to eliminate the duty exemption for low-value online orders, potentially starting next year, is set to increase costs for EU consumers purchasing inexpensive goods from platforms like Temu and Shein, while simultaneously aiming to level the competitive playing field for European retailers and enhance the enforcement of product safety and compliance standards across the bloc.

Who Thinks What?

EU member states and the EU executive agreed to eliminate the duty exemption for low-value online orders to address unfair competition from overseas platforms, prevent non-compliant products from entering the bloc, defend European business interests, and enhance the EU’s economic sovereignty and competitiveness, pushing for implementation as early as next year.

European retailers have long contended that they face unfair competition from overseas platforms like AliExpress, Shein, and Temu, which they claim frequently do not adhere to the EU’s stringent product regulations.

European Union member states reached an agreement on Thursday to eliminate a bloc-wide duty exemption for low-value online orders, a move primarily targeting the influx of inexpensive Chinese imports from major retail platforms such as Temu and Shein. The decision aims to tackle concerns over unfair competition and product non-compliance, with the goal of implementing the change as early as the beginning of next year.

Current Exemption and Import Volume

Currently, packages valued under €150 imported directly to consumers within the 27-nation bloc are exempt from duties. This exemption has facilitated a significant volume of cross-border e-commerce.

Last year, approximately 4.6 billion such small parcels entered the EU, with 91 percent originating from China, a volume that EU officials expect to increase significantly in the coming years.

Push for Earlier Implementation

Member states, including France, and the EU executive are pushing for the duty exemption to be removed from the start of next year, rather than the initially projected 2028. They plan to develop a “simple, temporary solution” to facilitate this earlier implementation.

Addressing Unfair Competition and Standards

European retailers have long argued they face unfair competition from overseas platforms like AliExpress, Shein, and Temu, which they claim frequently do not adhere to the EU’s stringent product regulations. This move is seen as a response to these concerns.

Following the agreement, EU Trade Commissioner Maros Sefcovic stated that the political consensus “sends a strong signal that Europe is serious about fair competition and about defending the interests of its businesses.” He added that “Europe must be able to protect its borders effectively and uphold fair competition.”

This initiative aligns with the EU’s broader strategy to enhance the continent’s competitiveness by reducing bureaucratic burdens for European enterprises.

France’s Stance and Economic Sovereignty

France has been a key proponent of this change, having received around 800 million such packages last year. French Finance Minister Roland Lescure welcomed the decision, describing it as a “key step for the protection of European consumers and the internal market” and a measure to “fight more effectively to prevent dangerous products and those that do not comply with our European regulations entering.”

Minister Lescure further emphasized the agreement as “a major step for the economic sovereignty of the European Union,” highlighting the broader implications for the bloc’s internal market and regulatory framework.

Related Measures and National Actions

Alongside Thursday’s agreement, the EU executive had proposed a small package handling fee of two euros in May. While member states have yet to agree on the specific fee level, they hope it could be applied from late 2026.

Some states have already taken independent action, with Romania, for example, imposing a five-euro fee on small parcels, demonstrating a readiness among some members to address the issue proactively.

Outlook

The agreement underscores a concerted effort by the European Union to recalibrate its trade policies, addressing the economic impact of burgeoning e-commerce from non-EU countries and seeking to level the playing field for domestic businesses while safeguarding consumer standards.