France Imposes Fast Fashion Fees As Shein, Temu Face Up To €20 Levy Per Item

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France has begun imposing new fees on ultra-fast fashion products, with the charge potentially rising to nearly €20 per garment by 2030 as the government seeks to curb the growing popularity of cheap clothing sold online.

The levy came into force on Tuesday following legislation passed in June targeting so-called “ultra-fast fashion” businesses, including Chinese-linked e-commerce platforms Shein, Temu and AliExpress.

The companies have faced criticism from French officials over their role in encouraging consumers to buy large volumes of inexpensive clothing, raising concerns about the environmental and economic impact of the fast fashion industry.

French minister Mathieu Lefevre said the “harmful effects of ultra-fast fashion” on both the environment and the economy were “well known”.

Under the new law, whether a company falls under the ultra-fast fashion category will be assessed based on factors including the volume of clothing it puts on the market and the cost of repairing garments compared with their purchase price.

The amount charged on each item will depend on how it scores against those criteria. For 2026, the levy ranges from €0.50 (about RM2.30) for underwear to €2 for T-shirts, €9 for jeans and €12 for jackets.

The charge is scheduled to increase over time and could reach €19.50 per item by 2030. However, the levy cannot exceed 50% of the product’s pre-tax selling price.

The policy has also drawn criticism from China. Its commerce ministry has described the French legislation as discriminatory and a trade barrier, arguing that it could conflict with World Trade Organization principles.

French authorities said in July that the levy would not apply to major retailers such as H&M and Zara, prompting criticism that the measure could disproportionately affect non-European companies.

Shein, founded in China and headquartered in Singapore, is among the biggest names affected by the move. The company was valued at US$26.2 billion on its first day of public trading in Hong Kong, far below its previous estimated valuation of almost US$100 billion.

The company has faced increasing competition, trade tensions and scrutiny over working conditions and the environmental impact of its supply chain.

Shein previously warned that legislation targeting ultra-fast fashion could further hurt French consumers’ purchasing power amid the ongoing cost-of-living crisis.

Temu, meanwhile, has also faced criticism from politicians in Britain and the United States. The company has acknowledged concerns about the environmental impact of the industry but argues that it should not be classified as a fast fashion business because it operates as an online marketplace rather than manufacturing its own products.

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