Affordable Chinese Goods Threaten European Market Amid Trade Tensions
Rising costs potentially impacting Shein and Temu deliveries.
© Stock Rocket/Adobe Stock By Solina Prak Published on
While tariff disputes brew between the U.S. and China, Europe faces a looming threat: the overwhelming influx of cheap Chinese goods. To halt these imports and prevent a trade war with Beijing, French Economy Minister Eric Lombard outlined measures under consideration by the government in an interview with Paris Match on April 29.
"The Chinese government has declared plans to boost domestic consumption," Lombard stated. "However, we stay vigilant and monitor the influx of goods daily. If an extraordinary increase in exports to Europe is detected, we could implement safeguard measures." Lombard continued. These measures, permitted by European regulations, can temporarily limit imports to safeguard national industries.
However, with the rise of e-commerce and fast-fashion sites Shein and Temu, Chinese products are pouring into France.
Brace for Higher Shein Prices! ## End of Customs Duties Exemption
"Tons of goods are moved on a daily basis by air," Lombard noted. According to Paris Match, that amounts to 5,000 tons daily for Shein and 4,000 tons for Temu. To control these flows, which jeopardize European industry, the European Commission proposes a reform of the customs union. By 2028, this reform would eliminate the exemption from customs duties for packages valued under €150.
Practically, small packages will become more expensive. The executive is currently developing a model for a "management fee" for each package. These funds will enhance customs controls in Paris-region postal centers to fight smuggling and illicit trading.
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"What France proposes is to create, by 2028, a European coalition so that, if possible by 2026, we have a flat fee that allows us to have the resources for our checks," said Public Accounts Minister Amélie de Montchalin. Accused of endangering European industries, the French government is preparing to tackle Chinese giants...
On the Radar ○ Shein ○ E-commerce ○ European Commission ○ Delivery
Behind the Scenes
The French government plans two key safeguard measures to tackle Chinese imports, encompassing both the industrial and retail sectors.
- Steel Industry Protections France advocates for tightened quotas and trade defenses against Chinese steel imports due to overcapacity and a 20% drop in European demand over five years[1][3][4]. The pending 600-job cut at ArcelorMittal's French sites has intensified calls to "accelerate the European process for steel protection," although specific product categories remain undefined[1][4].
- Small-Parcel Fees To curb e-commerce platforms such as Shein and Temu, France aims to impose new fees on small packets from China[2]. While the exact fee designs are undisclosed, this reflects broader EU efforts to counter trade deviation from U.S. tariffs[5].
Price Implications The small-parcel fees would probably boost final consumer prices for Shein/Temu orders, though this could fluctuate based on whether platforms absorb costs or pass them to customers. For steel, stricter quotas might balance EU steel prices by decreasing import-induced oversupply. However, energy costs and decarbonization investments (e.g., €1.8 billion for ArcelorMittal Dunkirk[4]) remain price determinants[1][4][5].
- The tariff disputes between the U.S. and China are not the only trade tensions causing concern, as Europe faces an influx of cheap Chinese goods threatening its market.
- The French government, led by Economy Minister Eric Lombard, is considering safeguard measures to halt these imports and protect national industries from the competition.
- These measures, including tightened quotas and trade defenses against Chinese steel imports and new fees on small packets from China, are being proposed by the French government.
- The implementation of these safeguard measures would temporarily limit imports and could boost final consumer prices for goods from e-commerce platforms such as Shein and Temu, but potentially balance EU steel prices by decreasing import-induced oversupply.
- The rise of fast-fashion sites like Shein and Temu, and the elimination of the exemption from customs duties for packages valued under €150 by 2028, signals that Chinese products are increasingly influencing European lifestyle and the business sector.
- These trade tensions and measures are part of the general-news landscape, as countries navigate the evolving landscape of finance, industry, technology, and international relations in an increasingly interconnected world.
