Is game over for Temu and Shein in Europe, too?
The European market is facing a new challenge due to the US trade restrictions: packages from Shein, Temu and AliExpress are increasingly flowing into the EU. Due to the economic risks, Brussels is examining the possibilities of protection in an accelerated procedure – Portfolio writes following an article in L’Express.
Donald Trump’s order, which will come into effect on May 2, which will end the duty-free status of goods from China and Hong Kong under $800 in the United States, could fundamentally shake the American operations of Chinese e-commerce giants. In response to the shrinking market, companies – led by Shein, Temu and AliExpress – are expected to redirect their unsold stocks to Europe. This could have serious consequences for EU trade, industry and the budget.
Duty-free flood: 12 million small packages per day
According to current EU regulations, imported small packages under the value threshold of 150 euros are duty-free. The French newspaper L’Express estimates that around 12 million such small packages arrive in the EU every day, worth a total of €4.6 billion a year. The fact that around 65% of packages are deliberately undervalued helps to circumvent customs borders. The trend is already visible in France: according to the CEO of La Poste, one in four packages arriving comes from the Shein or Temu platforms.
Brussels and the Member States react
In response to the expected import pressure, the European Commission has set up a monitoring task force to monitor early signs of a Chinese parcel tsunami. Olof Gill, the Commission’s customs spokesman, confirmed that if it is proven that the increasing imports are causing industrial damage, they are ready to introduce protective measures – such as safeguard duties or quotas. The French economy ministry is particularly active in calling for a swift response, stressing that Europe should not bear the consequences of US political decisions.
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