France targets Shein and Temu with new fast fashion levy

France will begin charging a fee on ultra-fast fashion items starting Tuesday, with the cost potentially reaching nearly €20 (US$2.32) per garment by 2030. The new levy aims to target major Asian e-commerce platforms such as Shein, Temu and AliExpress, which have gained immense popularity in France in recent years. The fee targets these platforms due to their contribution to environmental and economic harm linked to the production and consumption of low-quality clothing at low prices.

The levy is based on two criteria: the volume of clothing put on the market and the cost of repairing garments relative to their purchase price. In 2026, companies will face fines of €0.50 for ultra-fast fashion underwear, €2 for T-shirts, €9 for jeans, and €12 for a jacket. The levy could potentially reach up to €19.50 (US$22.60) per item by 2030, however, it will not exceed 50 percent of the product's pre-tax price.

In addition to the levy, a tool to collect independent data is being developed, instead of relying solely on companies' own declarations. The new measure has been criticized for potentially excluding some retailers like H&M or Zara, which some argue creates an uneven playing field. Officials from France have stated that they view Shein, Temu and AliExpress as the key drivers of the surge in ultra-fast fashion.

Despite concerns over compliance with EU law raised by the European Commission, French officials claim those concerns have been addressed and the measure is not expected to be blocked. China has warned of potential retaliation over the law, labeling it as "discriminatory" and violating trade principles. Since a separate EU levy on small parcels from China came into force on July 1, imports of goods from China into the EU have fallen by around 30-40 percent.