EU tariffs on small parcels from China will make orders from platforms such as Temu and Shein slightly more expensive, after EU finance ministers agreed in Brussels to abolish the duty-free threshold for low-value imports.
The decision, taken on Thursday under the Danish EU Council presidency, aims to close a loophole that has favoured ultra-cheap parcels from China over goods sold by retailers inside the European Union.
Why the EU is ending the duty-free limit on small parcels
For years, parcels worth less than €150 have entered the EU without paying customs duties under the so-called de minimis exemption. While value-added tax already applies to these shipments, the duty-free rule has allowed a constant flow of cheap goods from third countries, especially from Asia, to reach European consumers on very favourable terms.
EU governments now argue that this model distorts competition. European retailers and importers must comply with full customs procedures and product rules, while many low-value parcels from abroad escape detailed checks or are undervalued. By removing the exemption and introducing tariffs on all imports, finance ministers say they want to create “more level playing field” conditions for businesses in the 27 member states.
The move also responds to political pressure over trade imbalances with China and worries about unsafe or counterfeit products entering the single market. Customs officials have warned that the current system makes it difficult to stop illegal goods, from unsafe electronics to products that breach EU standards on chemicals, labour or intellectual property.
Chinese platforms Shein and Temu built on ultra-cheap parcels
The reform is aimed in particular at Chinese-founded e-commerce platforms such as Shein and Temu, whose business models rely on shipping individual parcels directly from factories or warehouses in China to customers in Europe.
Instead of stocking goods in European distribution centres, these companies send enormous volumes of small, low-value packages that fall under the de minimis threshold.
According to recent EU figures, billions of low-cost items now arrive in the bloc every year, and an overwhelming share of them originate in China. The number of such parcels has increased sharply in a few years, driven by ultra-fast fashion and by apps that make it easy to order clothes, gadgets and household products for just a few euros.
By scrapping the customs exemption, EU finance ministers hope to reduce the price advantage that these platforms enjoy over brick-and-mortar shops and European online retailers.
The tariffs are also seen as one tool in a wider effort to push Chinese companies to comply with EU rules on product safety, environmental impact and fair competition.
What EU tariffs on small parcels mean for European consumers
For consumers, the immediate impact of EU tariffs on small parcels from China is likely to be modest but noticeable. The customs duties on low-value goods are expected to translate into small extra charges per parcel, rather than dramatic price increases on each item.
However, these extra costs could accumulate over time for frequent buyers of low-cost products. Some platforms may choose to absorb part of the tariffs in order to remain attractive, while others might pass them on directly to consumers through higher prices or shipping fees.
The reform also comes just ahead of key shopping periods such as Black Friday and the Christmas season, which are critical for online sales.
At the same time, the measure could support local retailers, especially small shops and European e-commerce companies that have struggled to match the prices offered by ultra-cheap imports.
If implemented effectively, the new rules may narrow the gap between the price of a product bought from a neighbourhood store and the same item ordered from a warehouse thousands of kilometres away.
Retailers welcome the move, but call for tougher enforcement
Business organisations in northern Europe have broadly welcomed the political agreement. Danish interests groups such as DI (Confederation of Danish Industry) and Dansk Erhverv (Danish Chamber of Commerce) argue that ending the duty-free threshold is a necessary step, but not sufficient on its own.
They point out that customs authorities will now have to control an even larger number of parcels, which could stretch resources at borders and sorting centres. To avoid overloading national administrations, these organisations have called on EU legislators to treat major online platforms as “deemed importers”.
Under this model, marketplaces like Temu and Shein would be legally responsible for ensuring that the products they sell into the EU comply with customs, safety and labelling rules before the parcels reach European customs officers. Supporters say this approach would make enforcement more effective and help to tackle illegal or non-compliant goods.
Implementation in 2026 and the politics of EU–China trade
One key uncertainty concerns the timeline. The European Commission originally planned to phase out the de minimis rule only in 2028, as part of a broader EU customs reform. Trade Commissioner Maros Sefcovic has now urged governments to remove the threshold as early as the first quarter of 2026, and finance ministers say they want tariffs to apply “as soon as possible in 2026”.
The exact date and the technical details still depend on negotiations with the European Parliament, which must approve the legislation, and on agreement among member states about whether to introduce a simplified temporary customs fee or standard tariffs based on existing customs codes.
Politically, the decision marks another step in the EU’s more assertive stance on economic relations with China. The removal of the duty-free limit sits alongside investigations into subsidies for Chinese electric vehicles, new screening tools for foreign investments and debates over the environmental cost of ultra-fast fashion.
For the Nordic countries, including Denmark, Sweden and Finland, the reform illustrates how European-level rules can shape everyday consumption patterns, from the price of clothes ordered on a smartphone to the survival of local shops on high streets. Whether the new EU tariffs on small parcels from China will fundamentally change those habits remains uncertain – but the era of tax-free ultra-cheap parcels appears to be coming to an end.
