EU imposes flat €3 tariff on Chinese parcels: Shein, Temu and AliExpress more expensive from July

What happened?

The European Council formally approved in November 2025 the elimination of the 'de minimis' exemption, which exempted parcels valued under €150 from tariffs. As of July 1, 2026, a flat €3 tariff will be applied to each parcel under €150. This rate will remain until 2028, when it will be replaced by percentage tariffs thanks to the implementation of the new Customs Data Center (CCD). The measure was agreed upon by the 27 member states and aims to close a legal loophole that allowed the massive entry of low-cost products without customs or tax control. According to European Commission data, in 2024 more than 2 billion low-value parcels were imported, most from China, a figure that has doubled since 2020. The decision is part of the revision of the Union Customs Code, which also includes the modernization of control systems by 2028.

Why is it important?

This measure is crucial because it directly attacks the business model of Chinese e-commerce giants like Shein, Temu and AliExpress. These platforms have exploited the 'de minimis' exemption to send millions of low-value parcels without paying tariffs, allowing them to offer prices up to 30-50% lower than European retailers. A study by consulting firm Oliver Wyman estimates that in 2024 alone, the EU lost approximately €1.5 billion in uncollected tariffs and VAT due to this loophole. Additionally, the avalanche of parcels has overwhelmed customs, with more than 2 billion shipments annually, of which only a minimal fraction was inspected. The EU thus seeks to level the competitive playing field with local companies, which comply with all tax obligations, and protect sectors such as textiles, toys and consumer electronics, which have seen their market share eroded. The measure also aligns with the European strategic autonomy strategy, reducing dependence on Chinese imports and fostering local production.

Consequences for consumers and businesses

• For consumers: Each order will cost at least €3 more, which may discourage low-value purchases. For example, a €10 item will cost €13, a 30% increase. For €5 items, the increase is 60%. This could reduce purchase frequency by 20-40%, according to Commission estimates. Regular Shein and Temu shoppers, who typically spend between €10 and €30 per order, will especially feel the impact. However, for orders over €150, the flat tariff does not apply, but standard VAT and tariffs, which were already charged, do.
• For Shein, Temu and AliExpress: Their business model based on massive, cheap shipments is directly affected. Shein, for example, sends over 1 billion parcels a year from China, with an average value of €15-20. With the €3 tariff, the effective shipping cost triples, eroding their competitive advantage. These companies could lose up to 30% of their EU sales, according to Bernstein analysis. In response, they have already begun setting up warehouses and distribution centers within the EU to avoid the fee, such as Shein in Poland and Temu in Belgium. They could also increase minimum order prices or split shipments to stay under €150, though the flat tariff applies per individual parcel.
• For the European market: A reduction in low-value imports and a boost to local commerce are expected, especially in sectors like fashion and electronics. Retailers such as Inditex, H&M and MediaMarkt could regain market share. However, there is a risk of increased smuggling or order fragmentation to avoid the tariff, though the EU plans to strengthen customs controls with the CCD. It could also accelerate the trend of Chinese platforms adopting local 'fast fashion' models with near-shore production.

Background and context

The United States already eliminated its own 'de minimis' exemption for Chinese products in May 2025, following an executive order by the Trump administration. This caused a 40% drop in Temu and Shein shipments in the following months, according to CBP data. The EU now follows a similar path, though with a gradual approach: first a flat tariff, then a percentage one. Unlike the US, which applied a 30% tariff directly, the EU opts for a transition to give companies time to adapt. This decision is part of the European strategy for strategic autonomy and the fight against unfair competition, which has already included antitrust investigations into these platforms for practices such as selling at a loss or using deceptive data. Additionally, the EU is negotiating an e-commerce agreement with China to establish fairer rules, though talks are stalled.

“The de minimis doctrine has allowed millions of parcels to enter without customs or tax control for years. With this measure, the EU closes a door that disproportionately benefited Chinese platforms,” say European Commission sources. “It is a necessary step to protect our consumers and businesses from unfair practices.”

What should readers know?

If you are a regular shopper on Shein, Temu or AliExpress, prepare to pay more from July 2026. The measure could also trigger changes in these companies' strategies, such as opening European warehouses or increasing minimum order prices. Additionally, in 2028 the system will switch to percentage tariffs, which could further increase the cost of higher-value items within the threshold. For example, a €100 item could face a 12% tariff, i.e., €12 extra, plus VAT. Consumers should compare prices with local alternatives and consider the total cost. For local businesses, this is an opportunity to regain competitiveness, but they must improve their digital and logistics offerings to capture users displaced from Chinese platforms. The EU also plans awareness campaigns to inform about the new costs and prevent fraud. In summary, the end of the 'de minimis' exemption marks a before and after in global e-commerce, with implications that will be felt both in consumers' pockets and in the structure of the European retail market.