EU Proposes New Strategy to Curb Cheap Online Goods From China

A mobile phone displays the app of cross-border e-commerce platform Temu in Shenzhen in Guangdong Province, China, on Oct 28, 2022. CFOTO/Future Publishing via Getty Images

The European Union has proposed new measures to curb the flow of low-value parcels from China, which officials say have flooded the European market over recent years.

The European Commission, the EU’s executive branch, published the proposal on Wednesday. It targets all non-EU e-commerce retailers but specifically mentions rapidly growing Chinese platforms such as AliExpress, Temu, and Shein.

According to the commission, a staggering 4.6 billion euros ($4.79 billion) of low-value items—defined as goods valued at under 22 euros ($23) and currently exempt from customs duties—were shipped directly to EU consumers in 2024. This figure is double the amount recorded in 2023 and more than three times that of 2022. More than 90 percent of these parcels originated from China.

“This exponential growth is raising numerous concerns,” the commission said, emphasizing that while consumers risk exposure to “harmful products,” European sellers—who adhere to the bloc’s strict product standards—also face unfair competition from unregulated imports and counterfeit goods sold via online marketplaces.

The new strategy calls on the European Parliament and the Council of the EU—the EU’s legislative branch—to accelerate a customs reform proposal that has been on the table since 2023. A key element of this reform would be the elimination of the duty relief currently granted to packages with contents worth under 150 euros ($156).

Removing this tariff-free access, which officials blame for fueling the dominance of low-cost Chinese retailers, is expected to generate 1 billion euros in annual tax revenue for the EU.

“This would be a true game-changer to level the playing field for e-commerce players,” Maros Sefcovic, commissioner for trade and economic security, said in a statement.

Additionally, the commission proposes that customs authorities, struggling to manage the overwhelming volume of small parcels, impose a handling fee. This fee would be paid by the online platform or the individual seller on the platform.

To support these changes, the commission said it would allocate additional resources to national customs authorities for inspecting smaller deliveries. Currently, six EU member states account for nearly 89 percent of all imported goods ordered online across the bloc.

The EU’s proposal follows similar actions taken by the United States, whereby the Trump administration moved to close a similar loophole that allowed direct shipments to U.S. consumers valued under $800 to avoid taxes or fees.

On Tuesday night, the U.S. Postal Service (USPS) temporarily suspended inbound packages shipped from China and Hong Kong. While the agency did not specify a reason for the pause, it was likely put in place to allow the postal service to establish a procedure for processing and charging duties under the new policy.

On Wednesday, the USPS said it had resumed accepting mail and packages from China and Hong Kong, stating that it was working closely with U.S. Customs and Border Protection to “implement an efficient collection mechanism for the new China tariffs to ensure the least disruption to package delivery.”