EU to impose tariffs on cheap Chinese goods from Temu, Shein and AliExpress

The EU is set to impose tariffs on cheap goods purchased from Chinese online retailers such as Temu, Shein and AliExpress, Reuters reported on Wednesday, citing three people familiar with the matter.

The European Commission is expected to propose later this month to scrap the current threshold of 150 euros ($161) below which items can be purchased duty-free. Currently, EU rules exempt online shipments from non-EU countries from customs duties if their value is less than 150 euros.

According to the European Commission, two billion parcels with a declared value of less than €150 arrived in the EU from non-EU countries in 2023, straining the customs system. “The huge scale of e-commerce is testing customs’ limits,” the Commission said.

Related: Temu files lawsuit against Shein for antitrust violations

The proposal to end the duty-free limit is part of a broader customs reform project that the Commission presented in May 2023. The surge in cheap imports has prompted the EU to accelerate the adoption of these reforms, according to Reuters reports.

“We fully support lawmakers’ efforts to reform the de minimis rule,” a Shein spokesman said. Alibaba, AliExpress’ parent company, along with Temu and the European Union, did not immediately respond to Reuters requests for comment.