The European Union's tariffs on free e-commerce packages entering the bloc, which target Chinese platforms such as Shein and Temu, could generate 6 billion euros in revenue a year for the EU budget over the period 2028-2034, according to a European Commission document obtained by Reuters on Friday.
This assessment, previously unpublished, shows the extent of the measures that Europe is taking against the flow of cheap imports through e-commerce, which, according to European authorities, come mainly from China.
According to the European Commission, around 5.8 billion parcels worth less than €150 entered the EU last year, a 26% increase on the previous year. The Commission estimates that most of these parcels were declared at a lower value than their real value, in order to avoid customs duties.
The EU will impose an additional 2 euro fee on low-value parcels, starting from November 1. This will further increase the burden on each individual item, following the 3 euro fee that came into effect at the beginning of July.
PDD Holdings, Temu's parent company, stated in August that this measure would have a significant impact on some parts of its activity, without providing a quantitative assessment.
Shein makes about a third of its revenue in Europe. The company's sales in the region had been falling even before the tariffs were imposed, as it raised prices and cut advertising spending.
A European Commission spokesman declined to comment on the estimate for expected revenue. During a briefing with reporters on Friday, another Commission official said it could not definitively predict the level of e-commerce revenue.
Dirk Gotink, the MEP leading EU customs reform in the European Parliament, said the new €2 tariff aims to combat what he called a “very toxic business model, based on low-value e-commerce imports from China that do not meet the standards and rules in force.”
"The new revenues that will be generated give us the opportunity and the means to correct decades of underinvestment and provide European customs authorities with the resources they need to effectively protect our common market," he said.
The revenue estimate also takes into account an expected decline in the number of low-value packages entering the EU, as Brussels anticipates that retailers will adapt to the new measures.
Tariffs put pressure on Chinese platforms
The EU tariffs follow similar measures taken last year by the United States, which removed duty-free treatment for online orders, to address concerns about unfair competition and unsafe products.
The European Commission estimates that around 90% of the fees collected will go to the EU budget, while 10% will remain with member states. However, this split could change if member states seek to keep a larger share of the revenue, while negotiations on the 2028-2034 budget are still underway.
Currently, EU member states retain 25% of tariff revenue.
Chinese e-commerce groups have already begun to adapt to the changes.
AliExpress, owned by Chinese e-commerce giant Alibaba, said it was expanding warehousing capacity in local markets in response to the tariffs. However, the company warned that the tariffs would hurt low-income families in Europe and “exacerbate the cost of living crisis.”
Temu has offered some buyers price cuts to offset the fees. This shows the pressure on the company to limit the effect of price increases on customers, who are used to ordering jewelry worth 3 euros or dresses priced at 5 euros.
Shein, which recently went public and is expanding its warehouse space in Poland, said it is focused on maintaining "competitive" prices, while offering faster and more convenient deliveries to customers.
US rival Amazon said 97% of the products it sells in the EU are fulfilled and shipped from warehouses located within the bloc, so only a very small number of shipments are affected by the new tariffs./Reuters
