EU introduces €3 parcel tax to curb cheap Chinese imports

The European Union is stepping up measures to address a growing trade imbalance with China, where the bloc’s deficit with the Asian giant is projected to reach about €360 billion by 2025. As part of its trade defence strategy, the EU will impose a temporary €3 charge on low‑value parcels (under €150) imported from outside the bloc, mainly from China, starting 1 July 2024. Importers, not consumers, will bear the cost, aiming to reduce the flood of cheap goods that flood online platforms such as Shein and Temu and to improve product safety oversight.

The move coincides with a visit to Brussels by Chinese Trade Minister Wang Wentao, shortly after EU leaders asked the European Commission to negotiate with Beijing on stricter trade defence tools. EU officials indicated that the parcel tax is not aimed specifically at China but at ensuring a level playing field for European manufacturers. China has warned it may retaliate against any measures it deems discriminatory, while the EU maintains that a broader set of instruments—including higher tariffs, quotas and supplier diversification requirements—may be deployed if needed.