EU Introduces €3 Duty on Low-Value Packages to Tackle China Trade Imbalance

The European Union has ended the decades‑old “de‑minimis” exemption by imposing a €3 customs duty on each low‑value item (under €150) shipped from non‑EU countries. The measure, effective 1 July 2026, targets the flood of cheap parcels largely coming from China, where platforms such as Shein, Temu and AliExpress account for about 90 % of the traffic. In 2025 the bloc received roughly 5.9 billion small packages – four times the 2022 volume – representing only 2 % of import value but raising safety and environmental concerns.

Commission President Ursula von der Leyen said the change “is about restoring fairness for European businesses and better protecting our consumers.” Trade Commissioner Maros Šefčovič added that “the status quo is not an option.” The duty is applied per product classification, so a parcel containing multiple categories can trigger multiple €3 charges. A separate handling‑fee proposal is under discussion.

Alongside the parcel rule, the EU adopted new steel safeguards: a tariff‑free quota of 18.3 million tonnes annually and a 50 % out‑of‑quota duty on 26 steel products, with tighter traceability requirements to prevent circumvention via third‑country routing. The measures respond to a widening EU‑China trade deficit – about €360 billion in 2025 (≈ €1 billion per day) – and to China’s near‑record $1.2 trillion global surplus.

France removed its own €2 national levy, aligning with the EU rule, while other member states prepare to enforce the new customs charge. Analysts expect the levy to raise revenue, protect domestic retailers, and pressure online sellers to adjust logistics, potentially reshaping the Euro‑area e‑commerce landscape.