EU's Crackdown on Cheap Imports from Third Countries, Especially China
Brussels intends to impose a tax on affordable goods from external nations.
Aiming to establish a level playing field for domestic manufacturers and protect jobs, EU countries are mulling over taxes on packages from nations outside the European Union. The proposed levy is yet to be disclosed. This move is part of a customs union reform, which seeks to make import taxes applicable for previously duty-free, cheap goods from third countries.
At a meeting with other EU counterparts in Luxembourg, Germany's Finance Minister Lars Klingbeil (SPD) asserted, "We need to create a fair competitive environment." He emphasized that the restrictions are aimed at tackling "junk products" from China, price dumping, and overcapacity. It's no secret that such trade practices pose a threat to Germany's industries. Before any new rules can be implemented, the European Parliament must reach a final consensus.
In essence, the EU has been eyeing ways to curb the influx of cheap imports for quite some time now. Two years ago, the EU Commission suggested a reform that proposed customs duties on numerous goods under €150. Unlike earlier, no duties are levied if the goods are worth less than €150 – except for tobacco, perfume, and a few other exceptions. In recent years, the increased online trade has resulted in an uptick of small packages with low values making their way to the EU.
Anna Cavazzini, the chairwoman of the Internal Market Committee in the EU Parliament, expressed her hope that the reform will equip customs authorities to better manage the influx of imports. "Toxic teddy bears" and faulty smoke detectors could face a stiffer challenge when attempting to enter consumers' homes.
Beyond Anti-Dumping Duties
The EU's efforts to tackle cheap imports don't end there. Distinct from slapping duties based on price, the Carbon Border Adjustment Mechanism (CBAM) is a part of the EU's Green Deal. This mechanism imposes a charge on the carbon footprint of imports like aluminum, steel, cement, and electricity to mimic the emissions costs for European producers and deter imports that do not meet the EU's environmental standards. The pilot phase of the CBAM commenced on October 1, 2023, and the full enforcement is foreseen in January 2026.
A Work-in-Progress
As of mid-2025, the EU hasn't fully implemented comprehensive anti-dumping tariffs but maintains them as a possible countermeasure for the influx of cheap imports, particularly from Asia. The situation is being carefully monitored in light of global economic growth projections and inflation considerations. While the EU strives to safeguard itself from destabilizing trade practices, it's mindful of potential retaliatory actions that could lead to inflation or stagflation within the economy. Sectors like steel, aluminum, autos, and pharmaceuticals are the main areas where tariffs or duties could have a substantial impact due to past or potential tariff disputes and trade tensions.
- The proposed tax on packages from non-EU countries is part of a larger effort to provide aid for the production of agricultural products within the EU, as it aims to establish a fair competitive environment and protect domestic manufacturers.
- The EU's policy-and-legislation regarding customs union reform also includes industry-specific measures, such as the Carbon Border Adjustment Mechanism (CBAM), which levies charges on the carbon footprint of imports to match the emissions costs for European producers.
- Beyond anti-dumping duties, the EU's finance ministry is actively working on new policies and legislation to address the influx of cheap imports, with a goal to maintain a level playing field and ensure general-news coverage of these developments in politics and finance.
