EU plans to impose duties on cheap Chinese goods

The European Union (EU) is preparing to introduce customs duties on low-cost goods purchased from Chinese online retailers like Temu, Shein, and AliExpress, according to a Financial Times report.

Citing sources, the report mentions that the European Commission plans to eliminate the existing €150 ($161) threshold that allows such items to be bought duty-free.

Currently, packages ordered from non-EU countries and valued below €150 are exempt from customs duties.

In 2023, the EU faced a strain on customs resources from nearly 2 billion low-value parcels, prompting the commission to expedite a May 2023 proposal to abolish the €150 duty-free threshold to counter the influx of cheap imports.

Critics in the United States have already raised concerns about Shein and Temu using import tax exemptions to undercut competitors and evade customs inspections, enabling them to offer items like $8 dresses and $25 smartwatches at remarkably low prices globally.