EU finance ministers reached a consensus on November 13, 2025, to remove duty exemptions on parcels below €150 ($174) as early as 2026, a move that will affect Chinese online retailers such as Shein, Temu, and Alibaba.
Initially, the plan to impose customs duties on small parcels was slated for 2028, but mounting pressure from businesses compelled EU ministers to accelerate the move.
EU Commission President Ursula Von Der Leyen announced the decision on social media platform X, saying that ”From now on, all parcels will go through standard customs procedures. This is a key step to better manage the surge in small packages, particularly from China.”
She further stated that the move is necessary to ensure fair competition, stronger enforcement, and better consumer protection across the EU.
The policy change is seen as a way to prevent cheap Chinese goods, which account for the bulk of the small parcels the EU receives, from flooding the European market.
Many EU members supported the move.
”We will ensure that duties are paid from the first euro, creating a level playing field for European businesses and limiting the influx of low-cost goods, said Stephanie Lose, Denmark’s minister for economic affairs.
French Finance and Economics Minister Roland Lescure also lauded the decision, saying that France’s efforts to reach an agreement had ”paid off.”
“This is a key step for the protection of European consumers and the internal market to fight more effectively to prevent dangerous products and those that do not comply with our European regulations entering,” Lescure told AFP.
Some EU member states have already implemented their own measures to stop cheap Chinese goods from entering the EU, including Romania, which has introduced a €5 fee on small parcels.
Policy Change to Impact Chinese Online Retailers
Chinese online retailers like Shein, Temu, and Alibaba will be the hardest hit by the EU’s policy change because they rely on shipping large volumes of low-value parcels directly from Chinese manufacturers to consumers.
In 2024, the EU received 4.6 billion small packages, of which 91% came from China.
Since the November 13 announcement, none of the Chinese retailers has issued a statement on the policy change, though they have made significant strides in recent years to grow their footprint within the EU market. For instance, Shein opened its first permanent physical outlet in Paris in late 2025 and eventually plans to open stores in five other cities in France.
Tough Times for Chinese Retailers
The EU’s move follows similar policy changes in the U.S. The U.S. administration scrapped the de minimis rule through an executive order signed by President Trump on July 30, 2025.
The rule allowed companies to ship packages valued at less than $800 into the U.S. without paying duties or fees, and shipments didn’t require the recipient or sender to complete detailed customs paperwork.
Yet, while the policy changes in the EU and U.S. are aimed at protecting local businesses, they could also harm them, as exporters may face higher tariffs on low-value parcels and more customs paperwork when shipping packages across the Atlantic.
