France taxes Shein, Temu fast fashion
France has begun charging fees on ultra-fast fashion items, targeting e-commerce giants like Shein and Temu. The per-item levy, which started this week, could reach nearly €20 by 2030 under a new law passed in June.
France has begun imposing fees on ultra-fast fashion items, a move targeting major e-commerce platforms like Shein, Temu, and AliExpress. The levy, which came into force this week, could reach almost €20 per garment by 2030.
The New Law and Its Criteria
The charge follows legislation passed in June aimed at regulating ultra-fast fashion companies. French officials have criticised these firms for driving a surge in cheap clothing sales. The law defines ultra-fast fashion based on two criteria: the volume of clothing a company places on the market and the cost of repairing garments relative to their purchase price.
French minister Mathieu Lefevre stated the harmful effects of ultra-fast fashion on the environment and economy were well known. The per-item fee will vary on a set scale according to how each product scores on these standards.
Fee Structure and Targets
The fee structure for 2026 has been set, with charges varying by garment type. The levy will increase annually, with a cap set at 50% of a product's pre-tax price.
| Garment Type | 2026 Fee (€) |
|---|---|
| Underwear | 0.50 |
| T-shirts | 2 |
| Jeans | 9 |
| Jacket | 12 |
By 2030, the fee could reach up to €19.50 per item. The government has stated the levy will not apply to retailers such as H&M or Zara, a decision some have said appears to spare European companies.
International Reaction and Company Responses
China's commerce ministry has described the French law as discriminatory and a potential trade barrier, arguing it could violate World Trade Organization principles.
Shein previously said that such measures would worsen the purchasing power of French consumers. The company, founded in China and headquartered in Singapore, was recently valued at $26.2bn on its first day of public trading in Hong Kong, a figure down from a previous near-$100bn valuation.
A spokesperson for Temu argued the platform does not operate as a fast fashion company because it is a marketplace and does not manufacture its own products. The company stated it acknowledges the important environmental concerns addressed by the proposed French legislation. Temu has also faced criticism from politicians in the UK and US.
