EU imposes €3 duty on low‑value imported parcels

The European Union announced a new levy targeting online retailers that primarily sell goods imported from China, describing the measure as a response to what it considers unfair competition in the single market. The tax, which will be applied to platforms that generate significant revenue from low‑priced Chinese products and do not have a substantial physical presence in the EU, is intended to level the playing field for European sellers and to address concerns about market distortion, tax avoidance and the undercutting of local businesses. The European Commission said the levy will be collected by member states and will be phased in over the next two years, with rates calibrated according to each platform’s turnover from cross‑border sales.

The move mirrors a recent initiative by the United States, which introduced a similar surcharge on Chinese e‑commerce operators to counteract perceived subsidies and pricing advantages. Both jurisdictions argue that the levies aim to protect domestic markets without resorting to protectionist trade barriers. Industry groups have warned that the taxes could increase prices for consumers and complicate supply chains, while Chinese authorities have labeled the actions as discriminatory. The EU’s decision marks a coordinated effort among Western economies to address the growing influence of overseas digital marketplaces on their retail sectors.