The European Union is considering taxing the import of cheap products from Chinese online platforms Shein, Temu and AliExpress.
In an article published on Wednesday, July 3, 2024, the economic magazine Financial Times reports the idea that theEuropean Union is reportedly planning to impose tariffs on cheap products purchased on Chinese online sales platforms. Three platforms are reportedly in the crosshairs: Temu, Shein and AliExpress.
Currently, the law imposes a duty-free threshold of €150 for online purchases for small gifts or personal parcels. This means that purchases from a third country are not subject to customs duties if their price is below €150. In 2023 alone, the European Commission stated that “two billion parcels worth less than €150 arrived in the EU”. But this threshold is expected to be removed soon.
In May 2023, the European Commission had already discussed a plan to abolish the duty limitation. The project would aim to contain the craze for cheap online shopping and could apply to all e-commerce outside the European Union. And it seems that the latter could very quickly accelerate and come into force during the month of July. The aim is to counter the wave of imports of cheap products.
If the project were to succeed, the aid provided to online sales platforms would no longer be relevant. As a result, the company would be forced to pay additional costs related to customs duties. These additional costs could most certainly be passed on to consumers’ wallets.