The body that brings together the Ministers of Economy and Finance of the European Union (Ecofin) wants to put an end to the red carpet that Europe has laid out for platforms like Shein or Temu for years. The mechanism is simple: end the tariff exemption that until now has benefited packages of less than 150 euros that were imported into the old continent.
Why is it important. In recent years we have seen how platforms like Temu or Shein have become absolute giants of electronic commerce. Part of that success has been based on how cheap it was for these platforms to ship their affordable products: they took advantage of a tariff exemption for packages valued at less than 150 euros, but that exemption’s days were numbered. And now he has even more of them.
Deadlines want to be shortened. The initial proposal put forward by the European Commission was to eliminate this exemption in 2028. This week Ecofin took advantage of this proposal, but the executive made it clear that they have an additional objective: to advance its application two years, to 2026.
Chinese companies did not stop making a fortune. 91% of all e-commerce shipments valued at less than 150 euros They came from China in 2022. Alibaba, Temu and Shein were the clear beneficiaries of an exemption that was created in the 1980s and that has gained extraordinary relevance with the rise of electronic commerce.
1.5 billion euros that the EU does not collect. According to a report that the EU commissioned from a group of experts, the union’s coffers stopped collecting 1.5 billion euros for those imports of less than 150 euros. In 2024 products entered the EU worth 4.6 billion euros through packages of less than 150 euros: double that of the previous year.
Two euros for each small package. The Commission wants not only to stop this mechanism used by Chinese e-commerce platforms, but also to apply a minimum fee of two euros for these low-value packages. Eliminating the exemption in 2026 is a firm intention. This tax for the moment is an announcement that can remain just that.
It will not be easy to advance the deadlines. The initial proposal is reasonable in terms of deadlines because adapting customs to this new reality is not easy. As pointed out the EU statement issued after the meeting, this new regulation “will begin to apply once the EU Customs Data Centre, the central platform proposed by the EU to interact with customs and strengthen controls, is operational, which is currently planned for 2028.”
European companies could not compete. In recent years Shein, Temu or Aliexpress have grown exceptionally thanks to this regulation. According to Danish Finance Minister Stephanie Losse, this caused “unfair competition” in which European companies lost out.
Tariffs from the first euro. The EU estimates that 65% of small packages entering the EU are “undervalued to avoid customs duties on imports”, something that also raises “environmental concerns, given the incentive for non-EU companies to split shipments into individual packages when sending goods to the Union.” The new regulations seek to ensure that goods entering the EU pay tariffs from the first euro.
The US has already applied the story. The trade war that the US maintains with China caused the United States to already take similar measures. In February, Donald Trump issued a new executive order that also eliminated the so-called “de minimis” exception for packages valued below $800. Although there was later some relaxation Regarding the terms of that regulation, the impact on this type of commerce has been notable.
Our pocket will suffer. The logical consequence of these changes is twofold: consumers will not have access to such a wide catalog on Chinese platforms, and it is also likely that the products sold on Temu or Shein will increase in price to pass on this increase in costs to users. Meanwhile, companies from the old continent such as Inditex could win by competing more favorably against these Chinese platforms.
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