Temu, Shein, AliExpress... the European tax on small packages is causing the sales of Chinese platforms to collapse

Since July 1st, a customs duty of three euros per item category has been applied to all small packages valued under 150 euros entering the European Union. This new regulation appears to have significantly impacted sales on Chinese e-commerce platforms such as Temu, Shein, and AliExpress, according to an exclusive study conducted by Joko, which tracks consumer purchasing behavior across Europe. The study, based on data collected from 1.5 million consumers between January and July 2026, reveals a sharp decline in sales for several major Chinese online retailers during the first month of the new EU policy’s implementation. The drop is more pronounced than the previous impact observed when France introduced its own national tax earlier this year, which was later suspended with the introduction of the European measure. Under the new rules, each small package valued below 150 euros is subject to a three-euro customs fee per item category upon entry into the EU. According to 2024 data from the European Commission, nearly 91 percent of these small packages originate from China, directly targeting the business models of Asian e-commerce giants. This policy aims to curb the influx of low-cost goods from non-EU countries, particularly China, by increasing the cost of importing such items. France had previously attempted to impose a similar tax, introducing a two-euro-per-item-category charge in March, which was later increased to five euros by Parliament. However, this national measure was ultimately suspended on July 1st, coinciding with the activation of the broader European directive. According to Joko's findings, the impact on different platforms varies. Temu and DHGate appear to have suffered the most, while Shein shows greater resilience against the new tax. The study highlights a two-phase trend in consumer behavior: initially, there was a noticeable shift away from Chinese platforms due to the higher costs associated with the new customs duties. However, some users returned to these sites after adjusting their purchasing strategies, such as buying larger quantities or seeking alternative payment methods to circumvent the fees. The research methodology involved analyzing purchase patterns through Joko’s shopping application, which allows users to compare prices and earn cashback. By tracking changes in user activity before and after the implementation of the new regulations, the study provides insights into how European consumers are adapting to the financial implications of the policy. The results suggest that while the initial shock of the new tax led to a significant drop in sales for certain platforms, the long-term effects remain uncertain. Some consumers might continue to seek alternatives, either within or outside the EU, depending on how effectively they can navigate the new costs. Meanwhile, other platforms may adjust their pricing strategies or logistics to mitigate the impact of the customs duties. The situation underscores the complex interplay between international trade policies and consumer behavior. As the EU continues to refine its approach to managing cross-border e-commerce, the responses from both businesses and shoppers will likely shape the future landscape of online retail in Europe.