Europe Moves to Curb Chinese E-Commerce Firms: "Tariffs to Be Imposed on Low-Priced Parcels"

Abolition of Tax Exemption for Products Under 150 Euros

In an effort to strengthen regulations on Chinese e-commerce imports, European countries plan to impose tariffs on low-priced parcels arriving from overseas as early as 2026.

Customs officers are inspecting parcels at Bierset Airport near Li?ge, Belgium, last September. Photo by AFP Yonhap News

On November 13 (local time), the finance ministers of the European Union (EU) held a meeting in Brussels and agreed to abolish the current tax exemption for low-priced parcels valued at less than 150 euros (255,000 won) and to impose tariffs on such parcels as soon as possible. They also decided to consult with the European Parliament on these measures in the future.

Maro? ?ef?ovi?, the EU Commissioner for Trade and Economic Security, proposed scrapping the tax exemption for online purchases under 150 euros two years earlier than originally planned, in the first quarter of 2026, and introducing a "simplified temporary customs fee." The finance ministers of the member states put the proposal to a vote and passed it.

This measure is seen as targeting Chinese e-commerce platforms such as Shein, Temu, and Alibaba, which have been rapidly expanding into the European market by offering ultra-low-priced products. Commissioner ?ef?ovi? explained that he has consistently emphasized the need to eliminate competitive distortions for European industries, particularly for retailers. According to AFP, 4.6 billion low-priced parcels entered Europe last year alone, with 91% of them coming from China. The number of such parcels is expected to increase further this year.

European countries welcomed the agreement, calling for the swift implementation of the tax exemption removal. The Swedish Retail Industry Association and the German E-Commerce Association stated that this measure is expected to be the first step toward creating fairer competition. Italy's fashion industry also welcomed the agreement, saying it is essential for the survival of the country's textile and clothing sector.

Previously, the British daily Financial Times (FT) reported that the EU is preparing to abolish the tax exemption for low-priced parcels under 150 euros and to introduce a fee of 2 euros per parcel starting from mid-2028. Regarding this, the CEO of Poste Italiane, Italy's postal service company, commented, "The market will adapt," adding, "A mere 1 or 2 euros will not affect the appeal of such (Chinese low-cost product) platforms to consumers."