EU imposes fee on small Chinese parcels
Chinese e-commerce retailers are facing a global trade backlash.
On Tuesday, EU Trade Commissioner Maroš Šefčovič proposed a EUR 2 fee on small packages shipping directly to EU consumers, most of which come from China.
- Until now, packages worth less than EUR 150 were exempt from customs fees.
- Packages shipped to warehouses rather than directly to consumers will face a lower fee of EUR 0.50.
Some context: China ships a LOT of packages to Europe (SCMP):
- “Last year, 4.6 billion…small packages entered the EU – more than 145 per second – with 91 per cent originating in China.”
More context: Concerns about a deluge of cheap products from Chinese retail giants like Shein and Temu prompted the US to cancel – then reinstate, then re-cancel, then partially re-reinstate – its own de minimis exemption.
Trade pressure isn't just coming from the EU and the US: A meeting of G7 finance ministers this week reportedly discussed addressing low-value imports from China.
Get smart: Given Chinese e-commerce companies’ thin margins, even the EU’s relatively light fees will weaken their competitive edge.
- If other G7 economies impose similar fees, the cumulative cost pressure will significantly strain Chinese e-commerce companies’ profitability.
Get smarter: The problem isn’t limited to e-commerce.
- As Chinese exporters of all shapes and sizes look to non-US destinations to sell their goods, more countries will erect barriers to keep surplus Chinese goods from deluging local markets.