France has introduced a new tax that will increasingly penalise ultra‑fast fashion brands. The levy could push the average cost of a garment to nearly €20 by 2030.
The new measure takes effect from Tuesday, following a June law that singled out fast‑fashion giants such as Shein, Temu and AliExpress. France’s officials say these companies drive a surge in cheap clothing that harms both the environment and the economy.
The Chinese commerce ministry has labelled the law discriminatory, claiming it could breach World Trade Organization rules.
French minister Mathieu Lefevre emphasised the “well‑known harmful effects of ultra‑fast fashion” on the planet and job markets.
In July, Lefevre’s office clarified that the fee does not apply to European retailers such as HMD or Zara, leading some observers to say the policy effectively spares domestic brands.
The rule will classify an item as ultra‑fast fashion based on the volume of sales and the ratio of repair cost to purchase price. Using this system, the levy varies from €0.50 for underwear to €12 for a jacket in 2026. By 2030 the cap is set at 50% of the garment’s pre‑tax price, potentially increasing fees to €19.50 per item.
Shein, founded in China and headquartered in Singapore, was valued at $26.2bn on its first day of trading in Hong Kong, though its earlier price estimates were close to $100bn. The company has faced stiff competition, trade tensions, and scrutiny over its supply‑chain ethics.
Shein has warned that the new legislation will reduce consumer purchasing power amid the ongoing cost‑of‑living crisis. Meanwhile Temu, a Chinese marketplace, insists it is not a fast‑fashion company because it merely lists items rather than manufactures them.
French authorities have asked both Shein and Temu to comment, and the BBC awaits their response.
