A hard blow for online retailers like Shein or Temu: the European Union wants to impose a flat tax of 2 euros on billions of small packages entering the EU, especially from China.

The proposal, seen by the Financial Times, comes from Trade Commissioner Maros Sefcovic, who would like to set up a management commission to deal with the challenges related to the 4.6 billion items imported every year from China by European citizens.

According to the draft proposal, the 2-euro tax will apply to direct sales, but items sent to warehouses will also be taxed at 50 cents. Part of the revenue will cover the cost of additional customs checks, while the remaining money will go to the EU budget.

Sefcovic then promised to tackle the increase in packaging, which has led to an increase in dangerous and non-compliant goods and complaints of unfair competition from EU retailers.

(Online Union)