The European Union’s recent move to impose a temporary customs duty on low-value imports is significantly affecting cross-border e-commerce activities, particularly for Chinese platforms. Starting July 1, 2026, goods valued at up to 150 euros will incur a 3-euro customs charge, calculated based on the product categories of each consignment. This policy shift marks a critical change for businesses like Shein, Temu, and AliExpress, which have traditionally relied on shipping large volumes of inexpensive goods directly to European consumers.
Early data reveals profound impacts on the market. In Germany, the combined sales of these platforms dropped by 35.5% year-on-year in the third quarter of 2026, totaling approximately 566 million euros. Their share of the German online retail market fell from 5.3% in the previous quarter to 3.1%, according to the German E-Commerce and Distance Selling Trade Association (BEVH). Additionally, parcel volumes at Liège Airport, a key European e-commerce freight hub, plummeted by 42% following the introduction of the new duty. Despite this decline in small parcels, the overall cargo tonnage handled at the airport remained consistent with the previous year, indicating that the reduction in small parcel traffic did not equate to a drop in total freight activity.
While these developments disrupt the low-value parcel model, it remains unclear how much market share has shifted to European retailers or alternative distribution methods. The evolving landscape underscores a shift in the trade dynamics between China and Europe, especially as Chinese e-commerce firms increasingly connect suppliers with European customers through digital platforms and cross-border logistics.
The implications of these changes extend beyond merely controlling low-value imports. The EU is attempting to balance customs enforcement, product safety, and fair competition while also preserving consumer choice and ongoing business relationships between China and Europe. Chinese platforms have adapted their operational strategies in response to the evolving regulations. For instance, AliExpress has enhanced its local warehousing in Poland, and Temu has introduced discounts for customers to offset increased costs.
Regulatory developments are also significant. The EU’s Digital Services Act (DSA) obligates platforms to meet certain safety standards and can impose hefty fines for non-compliance. Temu faced a 200 million euro fine for failing to adequately assess product risks, while AliExpress incurred a 550 million euro fine for similar violations. Furthermore, the European Consumer Organization (BEUC) has identified safety issues in products sold through these platforms, contributing to increased scrutiny.
Chinese platforms are not only bringing products to European consumers but are evolving to include local businesses and logistics solutions within their operations. This adaptation reflects a more integrated trade dynamic that transcends traditional Chinese exports competing against European goods.
Looking ahead, the EU faces the challenge of enforcing common standards without biasing against foreign businesses, while China must ensure its companies can compete under transparent rules. The ongoing discussions in the China-EU Trade and Investment Consultation may help address regulatory concerns such as product traceability and customs information. As cross-border commercial networks continue to develop, maintaining a fair and open market will be crucial for both sides.
