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The EU is targeting small packages from China and will start imposing taxes from 2026! The cross-border industry is facing a major reshuffle

Shein and Temu's European business is going to change!

The EU is targeting small packages from China and will start imposing taxes from 2026! The cross-border industry is facing a major reshuffle


Against the backdrop of rapid global cross-border e-commerce expansion, the recent implementation of an EU tariff policy may profoundly change the circulation logic of low-priced goods.

Recently,the new regulation of the EU Councilstates that starting from July 2026, a 3-euro tariff will be imposed on parcels from e-commerce channels.

 

Image source:reuters

This policy applies to all types of goods and will continue to be implemented until a permanent solution is found, in order to abolish the micro-tariff exemption policy for online purchases under150 euros, aiming to crack down on cheap e-commerce imports from China on platforms such asShein, Tuke.

 

Image source:reuters

From Tax-Free Dividend to Fair Threshold

In fact,this adjustment by the EU is not sudden. For a long time,the tax exemption policy for parcels under 150 euros was a booster for cross-border e-commerce to rapidly penetrate the European market.

According to the latest data,the number of low-value e-commerce parcels arriving in the region doubled last year, reaching4.6 billion, of which over 90% came from China,and the growth rate has not slowed down.

 

Image source:reuters

The EU points out that this zero-threshold model is giving rise to multiple concerns: local SMEs, having to bear compliance costs such as tariffs and quality inspection, are gradually losing out in competition with low-priced imported goods; some cheap goods have uneven quality, safety risks, and even involve fraudulent activities such as false declarations; the influx of massive parcels puts pressure on EU customs supervision, and environmental burdens are also increasing.

The introduction of the new regulation is essentially to usethe symbolic threshold of a 3-euro tariff to breakthe old logic of tax-free as an advantage, and to promote the market to restructure towards a fairer and more transparent direction.

 

Image source:Google

Chain Challenges of Cost, Pricing, and Competition

For Chinese cross-border sellers who rely on low-price strategies, the direct impact of the new policy is the compression of profit margins.

Take a product priced at10 euros as an example. Previously, there was no need to pay extra tariffs, but now each order needs to add a cost of 3 euros. According to the current proportion of logistics costs, the overall cost may increase by 20%-30%. More tricky is that the EU has also proposed to impose an additional 2-euro handling fee per parcel (effective date to be determined), and if implemented, the cost pressure will further increase.

Meanwhile,adjustment of pricing strategieswill also become a must-answer question for sellers. Some merchants who rely on low prices and high volume may be forced to raise prices, but consumers' price sensitivity may lead to order loss; if they maintain the original price, they will have to absorb the additional costs themselves, and profit margins may be greatly squeezed.

In addition, small and medium-sized sellers, due to lack of scale effect and supply chain bargaining power, may be more significantly affected.The previous model of small profits and quick turnover is difficult to sustain, and the industry may accelerate its concentration towards leading sellers with compliance capabilities and brand power.

 

Image source:Google

Transformation from Traffic Expansion to Compliance Deep Cultivation

As a key hub connecting sellers and consumers, cross-border e-commerce platforms also face tests.

In the short term, platforms need to assist sellers in coping with the policy transition: on the one hand, they need to update systems to ensure that tariff calculation and declaration processes are in sync with the new EU regulations; on the other hand, they need to provide training or tools to help sellers optimize cost structures, such as reducing logistics costs through centralized procurement and adjusting product selection towards high value-added goods.

In the long run, the competitive logic of platforms will shift from low-price traffic attraction to a dual focus on compliance and service.

Platforms represented byShein and Tuke, in the past, quickly occupied the market with extremely low prices + rapid product launches, but under the new policy, the marginal benefit of low prices is diminishing. Platforms need to pay more attention to improving supply chain efficiency (such as shortening delivery chains through overseas warehouse layouts), protecting consumer rights (such as strengthening quality inspection to reduce return rates), and even exploring cooperation with EU local enterprises to avoid some tariff pressure through localized production.

Although this transformation may increase upfront investment, it can build a more sustainable competitive barrier for the platform.

 

Image source:Google

Conclusion

The implementation of the EU's new tariff policy marks the end of the stage where cross-border e-commerce rapidly expanded by relying on the advantage of low-price tax exemption.

Although this change will bring some short-term pain, in the long run, it will push the industry towards a more standardized and mature development stage.

For sellers and platforms, adapting to the new rules requires time and strategic adjustment, but it also provides an opportunity for industry upgrading. Those operators who can proactively optimize the supply chain, enhance product value, and flexibly adapt to policy changes will gain greaterdevelopment spacein the new market environment.

AI-ready brief

Short answer for decision makers

This TikTok business signal should be used as a planning prompt, not a standalone trend. The practical question is whether your brand has the market readiness, creator supply, Shop conversion path, paid-media structure, and reporting cadence to act on it now.

Key facts

  • Market signal: TikTok Marketing Information and Solutions
  • Published: December 18, 2025
  • Source transparency: the original source linked in this article

Tuke recommendation

Choose one market, one product group, one creator cohort, and one KPI for the next operating cycle. Then align creative testing, TikTok Shop optimization, live commerce readiness, and weekly reporting around that single decision.

What should brands do with this TikTok signal?

Brands should translate the signal into a focused operating test across creative, creators, TikTok Shop readiness, paid media, and reporting before increasing budget.

How does Tuke Marketing evaluate this kind of news?

Tuke Marketing reviews platform news through market timing, category demand, creator supply, commerce readiness, and measurable growth actions.

When should a team contact Tuke about this topic?

A team should contact Tuke when it needs to turn a TikTok market signal into a practical launch, creator, advertising, live commerce, or reporting plan.

Source transparency: Tuke cites the original source linked in this article and adds its own operating analysis for brands evaluating TikTok growth decisions.

Related Tuke operating pages

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Glossary context

Key TikTok terms behind this story.

TikTok live commerce TikTok Live Commerce TikTok live commerce combines live video, host selling, product demonstrations, offers, comments, and TikTok Shop checkout into a real-time sales workflow. TikTok Ads ROAS TikTok Ads ROAS TikTok Ads ROAS compares attributed revenue with advertising spend, helping teams evaluate whether paid media is creating efficient commerce outcomes. TikTok market entry TikTok Market Entry TikTok market entry is the process of deciding where and how a brand should launch TikTok content, ads, creators, TikTok Shop, and live commerce in a new country. TikTok creative testing velocity Creative Testing Velocity Creative testing velocity measures how quickly a brand can produce, launch, learn from, and refresh TikTok creative across ads, creators, and commerce.