EU to Fast-Track End De Minimis to Curb China Imports

The European Union is moving to fast-track the introduction of customs duties on low-value parcels as it seeks to stem the surge of inexpensive Chinese e-commerce imports. Trade Commissioner Maroš Šefčovič has proposed eliminating the €150 (US$175) “de minimis” exemption in 1Q26, bringing the measure forward by two years.

In a letter to EU finance ministers, Šefčovič argued that immediate action is necessary, stressing that “European industries, particularly retailers, have repeatedly underlined that this distortion of competition be removed without delay.” The exemption currently enables platforms shipping directly from China to undercut European retailers by avoiding customs duties.

A Flood of Low-Value Parcels

The proposal comes amid a sharp rise in direct-to-consumer shipments. Last year, 4.6 billion low-value parcels entered the EU—more than double the previous year—with over 90% originating from China.

“We have already received more parcels than in the whole of 2024, and Black Friday and Christmas are still ahead,” EU lawmaker Dirk Gotink warned.

Platforms such as Shein, Temu, AliExpress, and Amazon Haul are expected to feel the impact. Shein, already facing legal scrutiny in France over alleged sales of child-like sex dolls, declined to comment on the tariff plan.

The European Commission had initially planned to remove the exemption in 2028 as part of a wider customs reform, but Šefčovič says that timetable is now “incompatible with the urgency of the situation.”

Levelling the Playing Field

EU officials argue that accelerating duties is essential to protect domestic businesses from unfair competition and prevent Europe from becoming a dumping ground for cheap imports—especially now that the United States has ended its own de minimis policy for goods under US$800.

EuroCommerce, the EU retail association, has cautioned that different national fees could fragment the single market. The Commission has proposed a unified €2 fee per package, though its rollout date remains uncertain.

EU finance ministers are expected to adopt a common stance before negotiations with the European Parliament begin. Dutch Finance Minister Eelco Heinen said it is time to “get a grip” on the volume of cheap Chinese parcels, while Greek Finance Minister Kyriakos Pierrakakis confirmed support for immediate tariff enforcement.

Mexico Adopts Stricter Rules

Mexico has also toughened its approach to low-value imports. In July, the Ministry of Finance and Public Credit (SHCP) raised the global minimum tax rate to 33.5% for small parcels arriving from countries without a free trade agreement, primarily China, up from the previous 19% rate.

This change closes a long-standing loophole in the “simplified e-commerce procedure,” under which platforms declared minimal values and paid a reduced rate that included VAT, tariffs, and income tax. The new levy applies to shipments arriving through international courier services from non-FTA partners.

The policy also aligns with pressure from the United States, which has pushed Mexico to tighten controls on the flow of Chinese products allegedly reaching US markets through Mexican territory.

The higher tax is expected to affect consumers, as companies such as Shein, Temu, and AliExpress will likely pass on part of the added cost. Some may instead absorb a portion of the expense or shift toward storing inventory in Mexico or the United States to reduce duties.