The European Union is working on a proposal to impose import duties on cheap goods bought from online platforms outside the bloc. This move is expected to primarily target Chinese retailers such as Temu, AliExpress, and Shein. According to sources familiar with the matter, the EU currently has a €150 ($161) duty-free threshold for online purchases. This threshold, initially meant for small gifts or personal packages, has been exploited, leading to a surge in small-value imports from these platforms.

The proposal aims to stem this flow and would apply to all non-EU e-commerce platforms, potentially altering the landscape for shoppers accustomed to lower prices on these sites. The European Commission did not immediately respond to requests for comments on the proposal.

This effort is part of a broader trend towards protectionism against Chinese companies. The EU is also set to introduce tariffs of up to 38 percent on Chinese electric vehicles this month. In the US, similar measures are being considered, with several bills in Congress looking to lower or close off what is known as the de minimis threshold for low-value personal packages.

Inflation in the US and Europe has led to significant demand for cheap goods sold by platforms such as Temu and Alibaba’s various arms. The rise of Shein, in particular, has caused a shift in market share from European apparel retailers like Hennes & Mauritz AB and Inditex’s Zara. In response, Amazon is planning to launch its own low-cost online storefront to compete with these platforms.

While there is no clear consensus among EU member states on this action, the proposal signifies a growing momentum to protect local producers from the influx of cheaper goods. This regulatory shift could have significant implications for both consumers and the market dynamics within the bloc.

By Alberto Nardelli