The Temu model is at a turning point: extra-cheap online imports may become more expensive from 2026

One ​​of the key elements of Temu’s business model so far has been that it has made maximum use of the EU’s current customs regulations. Shipments from outside the EU worth less than 150 euros are duty-free, so the platform has been able to enforce extremely low product prices on European markets practically without any obstacles. Although VAT must also be paid on these packages, the duty-free status has contributed significantly to Temu – and similar Chinese marketplaces – offering price levels that most European retailers cannot compete with, we learn from the RTL News report, which was reviewed by Infostart.

However, this situation may change from 2026. According to the European Commission’s proposal, the 150 euro duty-free limit would be abolished, and all low-value import shipments would have to pay duty. According to the plans, the new duty rates would range between 5 and 17 percent, depending on the product category, which in itself would mean a significant increase in costs. This would be accompanied by administrative and logistical burdens, which would further reduce the scope for the previously customary “almost free” delivery.

The purpose of the regulation is twofold: on the one hand, to slow down the influx of extremely cheap mass products from outside the EU, and on the other hand, to level the playing field for online stores and marketplaces based in Europe. According to Brussels’ argument, the current system distorts the market, as traders within the EU have to bear the entire tax and regulatory environment, while external players enjoy a significant cost advantage.

From a Hungarian perspective, the change could be particularly sensitive. The rise of Temu has spectacularly shaped domestic online shopping habits in the past year, primarily among price-sensitive consumers. However, the planned tariff tightening may lead to a noticeable increase in the prices of previously particularly cheap product categories – such as smaller electronics, home furnishings or fashion goods – which could discourage impulse purchases.

According to market expectations, platforms will pass on a significant portion of the additional costs to consumers, while the sustainability of the current business model will also be questioned. It is conceivable that Temu and its competitors will respond by building up European warehouse capacities or with new pricing strategies, but these steps will no longer allow the current price levels to be maintained in the long term.

At the same time, the change may also create opportunities for Hungarian and European e-commerce players. If duty-free access is eliminated, price competition may shift partly to quality, service and logistics, where local retailers traditionally have stronger positions. The next year and a half could therefore bring a strategic re-planning not only for Temu, but for the entire European online retail sector.