EU eyes €2 fee on small shipments, posing a new hurdle for Shein and Temu

The news: The EU is taking aim at a surge in low-cost imports with a proposed flat €2 ($2.27) tax on small parcels shipped directly to consumers, per Politico.

• The levy, which will hit packages worth under €150 ($170.02), are paid by the ecommerce platform handling the shipment.
• The EU also proposed a separate €0.50 (54 cents) fee for goods routed through warehouses.

The context: The move follows the US decision to shut down the so-called “de minimis loophole,” a long-standing policy that allowed packages under $800 to enter the country tariff-free and with minimal customs friction.

• On May 2, the Trump administration began slapping a 120% duty—or a flat $100 per item—on small parcels from China and Hong Kong.
• While that rate was later eased to a still-sizable 54% earlier this month, it triggered price hikes from Shein and Temu in the US that then resulted in sales falling at both platforms.
• With demand cooling stateside, both ecommerce giants ramped up digital ad spend in Europe as they sought to drive growth. The EU’s proposed tax appears to be a defensive play that shields local retailers from an influx of cut-rate goods that might otherwise be dumped in the region.

Our take: While a €2 fee is modest against the sky-high levies now imposed in the US, it signals a clear trend: Regulatory barriers are rising. For platforms like Shein and Temu, the road ahead will test their adaptability. With margins under pressure, their path to growth may hinge on how deftly they can navigate—and compete in—an increasingly fortified global marketplace.

Go further: Check out our coverage on the Impact of Tariffs.