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European consumers now face a far smaller charge on imports from Chinese retailers than shoppers in the US.The European Union said on Tuesday it will start imposing a flat fee of 2 euros ($2.26) on parcels worth less than 150 euros imported into the bloc.
About 4.6 billion parcels entered the EU last year, with the vast majority coming from China.
Earlier this month President Donald Trump reduced the tariffs on Chinese imports from 120% to 54%, and maintained the flat fee of $100 per postal item for packages worth less than $800.
Europe’s move is a blow to Chinese fast fashion giants such as Shein and Temu, but less so than ending the “de minimis” loophole that had allowed US import duties to be avoided.
Customs and Border Protection data shows that de minimis shipments account for more than 90% of all cargo entering the US.
Trump’s move means consumers cannot expect a return to the golden era of cheap clothes and fast delivery.
Rebecca Homkes, a lecturer at London Business School, said: “Consumers will see higher prices and potentially longer shipping times as Shein and others move from direct shipping to sending volumes of goods in containers to the USA to be re-sent from their USA-based warehousing.”
In the meantime, shoppers are likely to face fewer options, longer wait times, and fewer bargains.
“The pain will be suffered by lower-income households who relied on small parcels from abroad to stretch the family budget,” said Gary C. Hufbauer of the Peterson Institute for International Economics. “This will harm a lot of people who belong to Trump’s political base. It makes no sense.”
Raj Bhala, Brenneisen Distinguished Professor at the University of Kansas, said the previous 120% level was “essentially prohibitive, so Temu and Shein couldn’t ship into the US.”
There was no “some chance of retailers not decoupling entirely, perhaps if these retailers can absorb some of that 54% tariff.”
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