With the tariffs on Chinese Internet giants, is the shipment less?

Customs checks on Chinese e-commerce giants have led to a noticeable decline in shipments entering Slovenia, according to officials at the Slovenian Customs Administration. In July this year, customs authorities processed 8,955 parcels, which represents a reduction of over 40 percent compared to June. The drop has raised concerns among regulators and industry observers, particularly regarding the role of major Chinese online retailers such as Temu and Shein, which reportedly send minimal volumes of goods through Slovenia’s customs system. The situation arises due to the European Union's new customs regulations, which allow parcels to be cleared in one member state before being delivered to another. For example, a parcel cleared in Hungary or Belgium would have its import duties calculated there under the EU’s unified customs regime. Once cleared, the item is treated as Union goods and can proceed to the final destination without undergoing further customs procedures. This change aims to curb the growing dominance of Chinese e-commerce platforms, which have flooded the European market with low-cost products, often raising concerns about product safety, unfair competition, and counterfeit goods. According to data from the European Commission, inspections carried out across the EU in 2025 revealed alarming discrepancies. Over 60 percent of inspected goods from third countries failed to meet EU standards, lacking proper labeling, containing banned substances, or missing required documentation. These findings have prompted calls for stricter enforcement of customs rules and greater oversight of cross-border e-commerce activities. Shein, one of the most popular Chinese e-commerce platforms in Europe, has adapted to the new regulations by pre-paying all import duties and incorporating these costs into its pricing structure. However, some of its shipments originate from warehouses within the EU, meaning they are exempt from import duties altogether. While this approach reduces costs for the company, it results in higher prices for consumers. The European Commission insists that the three-euro levy is not a tax burden on end-users but rather replaces an outdated rule that previously waived customs duties on smaller packages. According to the Commission, the responsibility for paying the duty lies with the importer, though consumer advocacy groups argue that the cost is increasingly passed on to shoppers. Despite these adjustments, Shein has faced financial challenges in recent quarters. In the first quarter of 2025, the company recorded a net loss of $99 million (€87 million), a sharp contrast to the $395 million (€347.2 million) profit it made during the same period last year. The decline follows the imposition of new U.S. tariffs, which forced the company to raise prices for American customers. Sales in the first quarter fell by 14 percent compared to the same period last year, according to reports from CNBC. In addition to the U.S. tariffs, changes in European customs policy are expected to impact Shein’s performance in the region. The company plans to increase prices to offset additional costs, which could temporarily affect sales volume in Europe. Even without these price hikes, Shein has already seen a slowdown in growth. Sales in 2025 increased by just nine percent compared to 2024, far below the 33 percent growth recorded between 2023 and 2024. Experts warn that regulatory changes pose a serious threat to Shein’s business model, which has historically relied heavily on offering low-priced products. Angela Lee, a professor of venture capital at Columbia Business School, told CNBC that the shift represents a fundamental challenge for the company. “This isn’t just an extra cost,” she explained. “They’re losing access to a regulatory advantage that was central to their business model. It’s a very significant change that alters how the entire company operates.” The evolving landscape of international trade and customs regulation continues to reshape the competitive dynamics of global e-commerce, with implications extending beyond individual companies to broader economic and consumer trends.