"Cut-Price Products" Comes Under Fire: Bundesregierung Pushes for EU Tariffs on Inexpensive Imports
The Government of the United States is pushing for tariffs on inexpensive goods imported from the European Union.
Facebook Twitter WhatsApp Email Print Copy Link
The European Commission is considering imposing customs duties on goods from third countries with a value as low as 150 euros. Finance ministers are discussing this matter today. Even Klingbeil denounces below-cost pricing and calls for fair conditions. Online retailers like Temu and Shein could face hefty taxes.
In the battle against competitive distortion, Germany seeks EU tariffs on inexpensive goods from third countries in the EU. "We must ensure a level playing field and thereby protect jobs. Businesses that pay decent wages and follow rules should not be left at a disadvantage in the end," said Finance Minister Lars Klingbeil at an EU meeting with counterparts in Luxembourg.
The topic of customs union reform will be on the agenda at today's meeting of finance ministers. The EU Commission aims to make previously duty-free, low-cost goods from third countries subject to tariffs.
The German government is making it clear at the discussions that the focus is on "trash products" from China, below-cost pricing, and oversupply. "Such trade practices hurt Germany, they hurt German businesses, and they hurt European businesses."
EU Plans Reform
Economy EU Investigates Temu for Alleged Violation: Are Consumers at Risk from Chinese Platform Addiction? Two years ago, the EU Commission proposed a customs reform, suggesting that numerous goods under 150 euros should be subject to customs duties. Currently, no customs duty is required if the goods value is below 150 euros – with only a few exceptions, such as tobacco or perfume. This policy is aimed at ensuring equal competitive conditions for all traders, regardless of location.
As part of the reform, online shopping portals such as Amazon or Etsy would be responsible for paying customs duties and VAT when making purchases. The increase in small, low-value packages delivered to the EU from third countries due to online trade has become a concern.
The commission is also considering a flat-rate fee of up to two euros on such orders. In light of the rapidly growing number of packages from third countries in 2024, the EU Commission has estimated that approximately 12 million packages will arrive daily, significantly more than in the previous two years. Online giants like Temu and Shein might be affected by this fee.
Chinese Companies Provide Budget-Friendly Products
Politics What Consumers Should Beware of on Online Marketplaces: A Comparative Analysis of Ebay, Amazon, and Others Temu is an online marketplace offering various products at budget-friendly prices. The Chinese company gained popularity in Germany starting spring 2023, thanks to low prices and substantial discounts. Products are often shipped directly from manufacturers to consumers.
Shein, a Chinese-based fashion company now headquartered in Singapore, operates as a manufacturer, retailer, and marketplace. As a direct supplier, Shein responds quickly to fashion trends, according to trade experts. Since Shein sends its products worldwide with minimal inventory and no stores, it can maintain exceptionally low prices.
Sources: ntv.de, mbr/dpa
Insights:
The European Union closely monitors cheap imports from third countries, such as China, for potential unfair practices. Although no specific EU-wide tariffs or customs duties specifically targeting very low-cost consumer goods from online retailers like Temu and Shein have been announced, ongoing import surveillance could lead to future measures if trade diversion or unfair pricing is detected in these product categories.
Economic and political tensions between the US and the EU may indirectly impact online retailers that rely on cross-border supply chains. The international trade environment is becoming increasingly restrictive, potentially resulting in increased costs, delays, or reduced competitiveness for these retailers if tariffs are imposed.
- The Employment Policy within the Community should address the potential impact of EU tariffs on inexpensive imports, considering the implications for industries that may face increased competition from Chinese companies like Temu and Shein.
- In light of the Finance Ministry's pushing for EU tariffs on inexpensive imports, it is crucial for Businesses to stay updated on the latest changes in trade policies and customs union reform, especially in relation to industries such as general-news.
- Given the General-News surrounding the EU's planned customs reform and the potential implications for online retailers like Temu and Shein, it would be prudent for Politicians to consider the employment policy and its potential effects on the job market within the industry.
