Europe Ends Duty-Free Perk for Chinese E-commerce Giants

The move mirrors recent U.S. efforts to curb the rapid influx of inexpensive e-commerce shipments. By stripping away these tax exemptions, officials intend to shield local businesses from pricing strategies that have historically relied on tariff avoidance. The air cargo industry now faces a significant contraction, with forecasts predicting a 10% to 35% drop in e-commerce volume entering the EU.

To preserve their market share, platforms will likely pressure suppliers to absorb the additional costs. This fiscal adjustment serves as an interim bridge until 2028, at which point the European Union plans to implement a comprehensive overhaul of its customs duty categories to address the ongoing digital trade imbalance.