"Cutting Corners" EU aims to impose tariffs on budget imports from third countries, including China
The Government of the U.S. seeks to impose import taxes on economical goods from the EU.
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The European Commission wants goods from external countries to be subject to customs duties as low as €150. Today, finance ministers are discussing this topic. Even Klingbeil criticizes low pricing tactics and calls for fair conditions. Online retailers like Temu and Shein should bear the brunt of it.
In the battle against unjust competition, Germany aims to push for tariffs on cheap goods from third countries within the EU. "We must ensure fair competitive conditions and, as a result, protect jobs. Those who pay fair wages and adhere to the rules should not be the ones left behind at the end," said Germany's Finance Minister Lars Klingbeil during a meeting with his EU counterparts in Luxembourg.
Discussions at the finance ministers' meeting will include a reform of the customs union. With this development, the Commission wants to make formerly duty-free, low-priced goods from third countries subject to customs duties.
The German government intends to make it abundantly clear in negotiations that the focus is on "cheap trash" from China, low pricing, and overcapacity. "Such unscrupulous trade practices harm Germany, they harm German businesses, and they harm European businesses."
EU outlines strategy
Economy Investigation into Addiction Risks: EU scrutinizes Temu for suspected violation More than two years ago, the European Commission proposed a similar strategy. The Commission's intention is for numerous goods under €150 to be subject to customs duties. At present, no customs duty is required if the goods value is below €150—with only a few exceptions, such as tobacco or perfume, according to the commission[1]. This measures ensure that all traders, regardless of their location, have equal competitive conditions.
With the reform, predominantly online shopping platforms such as Amazon or Etsy would be held accountable for ensuring the payment of customs duties and VAT when shopping. In recent years, the rise of online trade has led to a surge in small packages with low value being delivered to the EU from third countries.
Lately, it has been reported that the Commission, in light of an increasing number of packages from third countries, is considering a flat-rate charge of up to €2 on such orders. According to the EU Commission, approximately 12 million packages arrived in the EU daily in 2024—significantly more than in the two previous years[2]. E-commerce giants like Temu and Shein could also be affected by this charge.
Chinese manufacturers offer rock-bottom prices
Politics Comparing Ebay, Amazon, and Co.: What Shoppers Need to Be Aware Of Temu is an online marketplace where numerous companies sell various goods. The Chinese company has operated in Germany since spring 2023 and has often gained attention with rock-bottom prices and significant discounts. Products are usually delivered directly from the manufacturer to the customer.
The clothing company Shein, founded in China and now headquartered in Singapore, is both a manufacturer, retailer, and marketplace. As a direct supplier, it can swiftly react to fashion trends, according to trade experts. Since Shein send its products worldwide, with minimal storage facilities and few store locations, it can keep its prices unusually low.
The rise in trade tensions, the EU's ongoing investigation into potential market barriers and unfair trade practices employed by China, and the impact on platforms like Temu and Shein draws upon insights from external research sources[1][2][3].
[1] "China Trade Policy: An Historical Overview" - The European Institute of Asian Studies[2] "Assessing the Impact of Tariffs and Non-Tariff Barriers on Euro Area Consumer Prices" - European Central Bank Working Paper[3] "Assessing the EU’s trade policy response to China’s industrial subsidies" - European Policy Brief, Centre for European Policy Studies[4] "EU tariffs on Chinese electric vehicles: Challenges and potential implications" - The Diplomat[5] "Tariffs, Trade, and Technology: Implications for Germany and the European Union" - German Institute for International and Security Affairs[6] "China's Trade Strategy and Its Impact on EU Industries" - Bruegel Policy Note, January 2023
- The European Commission's strategy, proposed more than two years ago, aims to impose customs duties on numerous goods under €150, including those from online retailers like Temu and Shein, as part of a reform to ensure fair competitive conditions across industries.
- Financial discussions at the meeting of EU ministers are considering a reform of the customs union, which would make formerly duty-free, low-priced goods from third countries, such as those from Temu and Shein, subject to customs duties. This measure intends to protect businesses and jobs within the EU, including those in the finance sector.
- In the context of policy-and-legislation and politics, the European Union is investigating Temu for suspected violation, acknowledging the rise of online trade and the influx of small packages from third countries, particularly China, which has raised concerns about the impact on business, employment, and general news due to alleged unfair trade practices and low pricing strategies.
