In a landmark decision last Friday, EU finance ministers agreed to introduce a tariff of three euros (approximately 30 Swedish kronor) on all small packages imported into the European Union. This new fee, set to take effect from July 1, 2026, aims to curb the flow of cheap, often non-compliant goods from foreign platforms like Shein, Temu, and AliExpress. While the decision is a positive step, many industry voices, including those from Swedish Trade, argue that the tariff level should have been significantly higher to effectively tackle the problem.
The tariff marks the EU’s latest effort to level the playing field between local retailers and foreign e-commerce platforms that often evade strict EU product regulations. The decision follows the EU’s abolition of the customs exemption for packages under 150 euros (just over 1,600 kronor), a rule that previously allowed low-cost imports to bypass customs duties. This change, effective as of last month, has stirred mixed reactions across Europe.
A Step in the Right Direction, But More Is Needed
Martin Kits, head of business policy and opinion formation at Svensk Handel (Swedish Trade), welcomed the decision but expressed concerns over the low tariff rate. “We would have liked to see the tariff level significantly higher, given the scale of the problem,” he stated. The importation of cheap, non-compliant goods has long been an issue for European businesses, particularly in Sweden, where local retailers argue that foreign e-commerce platforms undermine their market position by selling products that don’t meet EU safety and quality standards.
The tariff comes just a month after the EU abolished the customs exemption for packages valued under 150 euros, which had been a loophole for foreign sellers. This move has drawn support from European businesses, but the tariff’s modest value—three euros per package—has sparked debate. Some stakeholders argue that a higher fee would more effectively curb the influx of non-compliant products, while others suggest that the modest fee reflects a pragmatic, incremental approach in anticipation of more significant changes to the EU’s customs framework.
Consumer Concerns: Price Hikes vs. Product Quality
Maria Wiezell, a consumer expert at the independent Swedish organization Consumers of Sweden, noted that while the tariff could lead to higher prices for imported goods, it may not be a major concern for consumers in the long term. “There’s a lot of low-quality products being imported, many of which lack CE marking or contain dangerous chemicals,” Wiezell pointed out. She acknowledged that the price increase might hurt consumers with limited budgets who rely on inexpensive products from platforms like Shein and Temu.
However, Wiezell emphasized that the real concern is not just about price increases but also the safety risks posed by these unregulated products. These platforms often circumvent EU regulations, making it difficult for consumers to assess the safety and quality of the goods they purchase. For many low-income individuals, these cheap goods may be the only affordable option, but the potential risks associated with unregulated products should not be underestimated.
A Call for a Permanent Solution
Despite the introduction of this temporary tariff, both industry representatives and lawmakers are calling for more permanent measures to address the problem. Martin Kits of Swedish Trade stressed the urgency of finding a long-term solution: “The basic problem is that EU legislation has allowed unscrupulous sellers to flood the market with non-compliant goods. If companies want to compete in the European market, they must do so with products that comply with EU regulations,” Kits argued.
Last year alone, over 4.6 billion small packages entered the EU, with a staggering 91 percent of them originating from China. This figure is expected to rise, further intensifying the challenges faced by European retailers who complain about the unfair competition they face from foreign platforms. According to Kits, these companies often ignore EU’s strict product safety regulations, which puts both consumers and local businesses at a disadvantage.
Conclusion: A Much-Needed Change, But Only the First Step
While the EU’s decision to introduce a three-euro tariff on small packages is a welcome move, it falls short of addressing the broader problem of non-compliant imports. The low tariff level and temporary nature of the measure suggest that European policymakers are still in the early stages of tackling the issue. As e-commerce continues to grow, further action is needed to ensure that foreign platforms play by the same rules as European retailers, safeguarding both consumer safety and the competitive landscape for businesses.
In the meantime, both businesses and consumers will be watching closely to see how the situation evolves and whether more substantial regulatory changes will follow in the coming years.