EU to Impose 3 Euro Tariff on E-commerce Small Packages Starting from July 2026

On December 12, 2025, the finance ministers of the 27 member states of the European Union reached an agreement on Friday to impose a fixed tariff of 3 euros (approximately 3.52 U.S. dollars) on e-commerce small packages entering the EU. This decision aims to address the unfair competition and safety risks posed by cheap imported goods from platforms like Shein and Temu from China in the European market.

The fixed tariff will come into effect on July 1, 2026. It will apply to small packages valued at less than 150 euros, especially those goods imported into the EU by non-EU sellers registered with the Import One-Stop Shop (IOSS) for value-added tax, covering 93% of e-commerce traffic in the EU.

The EU is introducing this temporary measure to address the issue of the “de minimis” exemption in the current customs regime. Under this exemption, online shopping small packages valued at less than 150 euros can currently enter the EU tax-free.

Due to this exemption, the number of cheap e-commerce packages entering the EU doubled last year, reaching 46 million, with over 90% coming from China.

Platforms like Shein, Temu, AliExpress, and Amazon Haul directly ship clothing, accessories, and small tools from Chinese factories to shoppers at very low prices.

The EU Council stated that this measure is intended to address the “unfair competition for EU sellers, health and safety risks for consumers, and high levels of fraud and environmental issues caused by tax-free imports.”

The EU had initially planned to eliminate this exemption in 2028 as part of a comprehensive reform of its customs system. However, due to concerns about the dumping of Chinese goods in the European market, the pressure to take faster action has been increasing.

The 3 euro fixed tariff will remain in effect until the permanent solution negotiated and approved by the EU in November 2025 (i.e., the complete elimination of tariff relief thresholds) takes effect. At that time, all goods below 150 euros will be subject to normal EU tariffs for individual products.

Moreover, the EU is also discussing a separate proposal for a 2 euro “handling fee,” but the implementation date has not yet been confirmed.