The European Union seeks to curb cheap Chinese shipments that are flooding the market economy

The European Union is working to abolish the minimum amount of 150 euros ($174.22) that exempts from imposing customs duties on shipments arriving to the bloc if their value is below it, as part of a campaign targeting low-cost Chinese goods.

In a letter addressed to the finance ministers of the European Union countries, Trade Commissioner Maroš Šefčović proposed canceling this limit in the first quarter of 2026, that is, two years earlier than previously specified.

Šefčović wrote that this move would show the European Union’s seriousness in protecting the competitiveness of its companies within the 27-nation bloc.

In the face of the flow of about 4.6 billion small shipments to the European Union annually – most of them from China – the European Commission, the executive arm of the bloc, is under increasing pressure from European companies to take faster measures to stop this flood of imports.

“In the current situation, the minimum will not be effectively abolished before mid-2028,” Ševčović’s letter said. “This time frame is not consistent with the urgency of the situation and does not serve our common interests.”

He added, “If we show the required political determination and realism, we can reach a practical solution in the first quarter of 2026.”

He added, “European industries – especially retailers – have repeatedly stressed the need to remove this distortion of competition without delay. It will be very difficult to explain to our companies and citizens why the European Union cannot act faster.”

EU finance ministers are expected to discuss the proposals on Thursday, and ahead of that meeting, Dutch Finance Minister Elko Heinen told reporters that it was time to “rein in” cheap Chinese shipments that are flooding the European market.

In a speech he delivered in Brussels on Thursday, China’s Ambassador to the European Union, Kai Ron, did not address this step, but warned against the “politicization” of trade and the rise of “protectionism.”

Kay said trade frictions are inevitable, but must be addressed through dialogue, and called for a “fair, equitable and non-discriminatory business environment.”

EU capitals will have to agree on the new timetable and negotiate the fixed tariffs that will be imposed, and some countries – including Romania – recently imposed national duties of up to 5 euros, forcing the Commission to take action.