The European Union (EU) is grappling with a surge in low-cost imports from Asian online retailers, including AliExpress, Shein, and Temu, which raise concerns over safety standards and counterfeit goods. Currently, packages valued under €150 are exempt from customs duties, creating an influx of goods that are difficult to regulate. With 40 packages arriving in the Netherlands every second via air and sea freight, physically inspecting all shipments is unfeasible.

To address this, the European Commission is exploring new measures, such as introducing a per-package administrative handling fee or imposing a tax on the revenue of e-commerce platforms. These measures aim to make ultra-cheap imports more expensive, deterring the sale of non-compliant goods and ensuring higher safety standards. However, implementing these policies would require negotiations with the World Trade Organization and consensus among the EU’s 27 member states, potentially leading to lengthy deliberations. The proposed actions are part of the bloc’s broader effort to regulate the growing dominance of Asian e-tailers while safeguarding European markets.

This story was originally featured on Financial Times.