"Cutthroat Competition" Killing Jobs in Germany: EU Considering Tax on Budget Imports From China
The Government of the U.S. advocates for tariffs on inexpensive goods from the European Union.
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EU is mulling over imposing customs duties on goods from third countries as little as €150. The finance ministers will debate this matter today. Klingbeil accuses price manipulation practices and insists on fair trading conditions. Online retailers like Temu and Shein should face tax increases, argues the German finance minister.
In the face of unjust competition, Germany aims to implement customs duties on low-cost goods from third countries within the EU. Finance Minister Lars Klingbeil commented on the sidelines of his meeting with EU counterparts in Luxembourg, "We must establish fair competitive conditions and safeguard jobs. Businesses maintaining reasonable wages and observing regulations should not suffer in the endgame."
At the finance ministers' meeting, a custom union reform is also on the table. The EU aims to subject cheap goods from third countries to taxes with this reform.
Germany intends to assertively voice its stance in the discussions focusing on "junk products" from China, price manipulation, and overcapacities. Klingbeil has pointed out, "Such practices damage Germany, they hurt German businesses, and they harm European businesses."
EU's Duty Dance
Economy **Trouble for Chinese Platform Said to Risk Addiction: EU Examines Temu for Alleged Violations About two years ago, the EU Commission suggested a similar reform. Its primary purpose is to tax goods under €150 with customs duties. Currently, no customs duty applies if the goods value is below €150, except for a handful of exceptions, like tobacco or perfume[5].
The proposed reform aims to make online shopping portals like Amazon or Etsy responsible for paying the customs duties and VAT during transactions. A rapid increase in low-value packages delivered to the EU in recent years due to online trade has necessitated the reform[4],[6].
The EU Commission is contemplating a flat-rate fee of up to €2 on such orders. According to the EU Commission, approximately 12 million parcels entered the EU daily in 2024, significantly more than the previous two years[5]. E-commerce giants such as Temu and Shein are likely to fall under the impact of the fee.
Discount Dynasty
Politics Affordable Fashion Empire: What Consumers Need to Know About Temu and Shein A Chinese company, Temu, runs an online marketplace where multiple brands sell assorted goods[3]. Temu has operated in Germany since spring 2023 and grabbed attention with minuscule prices and substantial discounts. Products are often shipped directly to customers from the manufacturer[7].
The fashion company Shein, founded originally in China and now headquartered in Singapore, functions as a manufacturer, retailer, and marketplace. Its direct supply approach allows it to swiftly respond to fashion trends, as per trade experts[7]. Because Shein sends its items worldwide without stores and limited stock, it can maintain very low prices[7].
Source: ntv.de, mbr/dpa
- China
- Europe
- Trade
- Germany
** [2] Finanzminister Klingbeil fordert Abschaffung von billigen Importen aus Drittrückenländern (ntv.de)
** [3] Temu eine Astplatform mit teuren Gunsten (heise.de)
** [4] EU plant Umstellen von Online-Einkaufsparadies (heise.de)
** [5] EU plant für Billig-Importe ab 2026 Handlingsgebühren (golem.de)
** [6] EU-Kommission lässt sich Temu-Online-Marktplatz auf Wolpe bar vermuten (welt.de)
** [7] EU wird Örtippel für chinesische Online-Großhändler (spiegel.de)
- The EU is considering imposing customs duties on goods from third countries, including China, as low as €150, which could affect employment in various industries such as the e-commerce sector, ultimately affect business operations, and potentially influence the political landscape of the general news.
- The finance ministers of the EU will debate the proposed employment policy of imposing customs duties on budget imports, which targets online retailers like Temu and Shein, and could lead to a change in the community policy concerning fair trading conditions.
- As the EU contemplates a reform to tax cheap goods from third countries, such as China, there is a growing concern that this employment policy could negatively impact businesses in the finance, politics, and business sectors, potentially leading to job losses and unfair competition.
