The EU introduces tariffs on small packages from Chinese platforms like Temu and Shein to curb cheap imports.

The European Union has implemented a new tariff system targeting small packages from Chinese e-commerce giants such as Temu and Shein. This reform aims to address the overwhelming influx of low-cost goods into the EU, which has surged to over 16 million packages daily, straining customs officials and raising concerns about product safety.

Previously, packages valued under €150 were exempt from customs duties, allowing platforms to exploit loopholes by splitting shipments or mislabeling goods. Starting July 1, a transitional tariff of €3 per product category within a package has been introduced. For instance, a parcel containing three pairs of pants and one pair of shoes will incur a €6 tariff—€3 for the pants and €3 for the shoes.

The reform is expected to reduce the number of small packages entering the EU, shifting trade towards larger containers that are easier to inspect. Andreas Schwab, EU Parliament spokesperson for internal market policy, stated that this change will enhance customs efficiency, enabling authorities to block entire containers if unsafe products are detected.

Concerns over product safety have been mounting, with reports of hazardous items such as flammable chargers and toxic children’s clothing sold on Chinese platforms. In May, the European Commission fined Temu €200 million for failing to address illegal products on its site. Temu has until August to respond to the allegations.

While the new tariffs are paid by businesses, consumers may face indirect costs as companies adjust product prices or shipping fees. Additionally, delivery times could lengthen as customs adapt to the new regulations. National customs agencies will report back to the EU on the impact of these measures, with further adjustments, including a processing fee for packages from non-EU countries, expected in November.

This reform marks a significant step in modernizing EU customs practices, ensuring better oversight of imported goods and addressing the challenges posed by the surge in e-commerce. Consumers are advised to stay informed about potential price changes and delays as the new system takes effect.