After Years Of Looking Away, Europe Starts Closing The China Shopping Loophole
For years, millions of Europeans filled their wardrobes and homes with ultra-cheap stuff from apps like Shein and Temu, often for less than the price of a coffee.
Now Brussels has decided that era cannot continue on the same terms. From early 2026, the European Union will scrap the special customs exemption for online purchases under €150, bringing forward a reform that had been parked for 2028.
The trigger is not ideology but arithmetic. In 2024, EU customs handled around 4.6 billion low-value parcels, roughly 12 million a day.
About 91% of all packages under €150 came from China. Officials say up to 65% of those parcels are deliberately undervalued to stay below the duty line.
European shops and factories pay full taxes, follow labor and safety rules and still have to compete with products that glide in almost tax-free, sometimes failing basic standards. On top of that, the sheer volume of tiny packages means more emissions and more waste.
Brazil offers a real-world test. In 2024 it introduced a 20% tax on international purchases up to $50, ending a de facto tax holiday that had supercharged imports from Chinese platforms.
Tighter rules boost local retail
Low-value orders dropped sharply, domestic fashion chains saw sales recover, and overall e-commerce did not collapse. The cost was felt most by lower-income consumers, but the policy clearly shifted demand back toward local players.
The United States is going further by rolling back the generous $800 de minimis rule, cutting China out of that privilege and citing both unfair trade and the abuse of cheap parcels to move drug precursors. The United Kingdom and Canada are tightening their own low-value regimes as well.
The deeper story is a change of mindset. Western governments are not shutting the door on trade, but they are less willing to subsidise state-backed foreign platforms through loopholes and lax enforcement.
For expats in Europe, this will likely mean slightly higher prices and slower deliveries – but also more predictable rules, safer products and a fairer shot for local businesses trying to survive in their own home market.
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