"Cut-Rate Products" Give EU Second Thoughts on Tariffs for Bargain Imports
The Government of the U.S. advocates for import tariffs on economical goods from the European Union.
Social Media Messaging Apps Email Print Copy Link
The European Commission is considering imposing customs duties on goods from third countries starting at a mere 150 euros. Today, finance ministers are discussing this issue. Even Klingbeil voices his disapproval of below-cost prices and insists on fair conditions. Online retailers such as Temu and Shein should be subject to heavier taxes.
In the quest for fair competition, Germany is advocating for tariffs on cheap goods from third countries across the EU. "We must establish a level playing field and safeguard jobs," said Finance Minister Lars Klingbeil following a meeting with his EU counterparts in Luxembourg.
At the meeting of finance ministers, they will deliberate on matters including a custom union reform. Brussels seeks to impose duties on previously duty-free, inexpensive goods imported from third countries with this proposal.
The German government will ensure during the negotiations that the focus is on "low-grade products" from China, predatory pricing, and excess capacity. "Such business practices cause injury to Germany, harming domestic and European businesses alike."
EU Proposes Customs Union Reform
Finance EU Report Raises Alarm Over Chinese Platform Addiction Risk: Commission Investigates Temu for Alleged Violation Nearly two years ago, the EU Commission suggested the reform that would make goods under 150 euros subject to customs duties. As of now, no customs duties are mandatory if the worth of the goods is below 150 euros—except for a few instances such as tobacco and perfume, according to the Commission. This move is aimed at ensuring that every trader, regardless of location, gets a fair chance in the competition.
The reform entails online shopping portals like Amazon or Etsy to pay customs duties and value-added tax when making purchases. The rise of online trade has led to a surge of small packages with low value being delivered to the EU in recent years.
Lately, it has come to light that the Commission, due to a sharp increase in packages from third countries, is contemplating a flat-rate charge of up to two euros on such orders. According to the EU Commission, around 12 million packages were delivered to the EU daily in 2024—significantly more than in the two previous years. E-commerce titans like Temu and Shein may also be affected by the proposed taxes.
Chinese Enterprises Offer Rock-Bottom Prices
Politics What Consumers Need to Know about Online Marketplaces like Temu and Shein Temu is an online marketplace where numerous companies offer varied products. The Chinese company has operated in Germany since spring 2023 and has received attention for its rock-bottom prices and substantial discounts. Products are often delivered directly from the manufacturer to the customer.
The fashion company Shein, founded in China and now headquartered in Singapore, is both a manufacturer, retailer, and marketplace. As a direct supplier, experts argue that Shein can quickly adapt to fashion trends. Since Shein ships its products throughout the world and maintains minimal inventory and few physical stores, it keeps its prices incredibly low.
- Trade
- Globalization
- E-commerce
- The European Commission's proposed customs union reform aims to impose customs duties on products over €150 from third countries, such as China, seeking a level playing field and safeguarding jobs in the EU, which have been threatened by the influx of cheap online imports.
- In the context of the EU's trepidation over cut-rate products from third countries giving second thoughts to tariffs for bargain imports, this reform also extends to online shopping portals like Amazon or Etsy needing to pay customs duties and value-added tax.
- The proposed customs union reform in the EU raises questions about e-commerce giants like Temu and Shein, known for offering rock-bottom prices, who may face additional taxes under the new regulations.
