New EU Tax on Cheap Imports Threatens Price Hikes for Shein, Temu, AliExpress

Starting July 1, the European Union has implemented a new tax on low-value packages imported from outside the continent, affecting popular online shopping platforms like Shein, Temu, and AliExpress. Previously, packages valued up to 150 euros were exempt from customs duties, but now a fixed fee of 3 euros will be charged per product category within a single order. This means that even small orders containing multiple product types, such as clothing, sunglasses, and tech accessories, could see price increases at checkout. Additionally, the EU is considering an extra handling fee of around 2 euros, though this has not yet been finalized.

The EU justifies the new tax as a response to the flood of inexpensive packages from China, which it says has created unfair competition for local businesses and complicated border inspections. According to EU data, over two billion packages valued under 150 euros enter member countries annually. Beyond pricing, the EU is also addressing safety concerns, noting that some products sold on these platforms do not fully comply with local standards, with past issues involving children's clothing, toys, and items containing banned substances.

A significant regulatory change also shifts legal responsibility for product safety compliance onto the platforms themselves, rather than solely on consumers. This exposes Shein, Temu, and AliExpress to potential fines and restrictions if they sell non-compliant products. Currently, this new tax applies only to shipments entering the EU, and there have been no announcements about changes affecting shipments or prices for customers in Israel. However, if these companies adjust their business models due to the new European costs, other markets, including Israel, could be impacted in the future.