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France Imposes Heavy Levies on Fast‑Fashion Giants Shein and Temu

Paris‑based levy could cost up to €20 per garment by 2030, targeting ultra‑fast fashion e‑commerce.

Source: bbc.co.uk1 min read

In brief

France’s new tax scheme will see fees reach up to €19.50 per item by 2030, aimed at curbing sales from ultra‑fast fashion retailers such as Shein and Temu. The levy is set against the backdrop of environmental and economic concerns over cheap, high‑volume clothing exports. The law, triggered by a bill passed in June, exempts established European brands but targets Chinese‑owned platforms. The fees will vary by garment type, starting at €0.50 for underwear and rising to €12 for jackets.

France has begun collecting stringent taxes on items sold by ultra‑fast‑fashion platforms, a move that could raise every garment’s cost to almost €20 by 2030. The levy is intended to curb the surge of cheap clothing supplied by global e‑commerce giants such as Shein, Temu and AliExpress.

The new charges, which took effect on Tuesday, are built on a law passed in June that defines “ultra‑fast fashion” based on the volume of clothing on the market and the relative cost of garment repair versus purchase price. The tax will differ by clothing type: underwear starts at €0.50, T‑shirts at €2, jeans at €9 and jackets at €12.

Despite the fee, France said it would spare European retailers like H&M and Zara – a decision some critics say deliberately protects domestic brands while targeting foreign competition. The leeway for up to €19.50 per item, capped at 50% of pre‑tax price, has sparked accusations from China’s commerce ministry that it is discriminatory and violates World Trade Organization norms.

Shein, which opened its first physical store in Paris last year, responded that the legislation will weaken consumer purchasing power amid a cost‑of‑living crisis. Temu, also criticised in the UK and US for its marketplace model, defended that it does not manufacture products, hence the fiscal impact is different.

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