In brief
The French government has introduced a per‑item tax on ultra‑fast fashion brands, with fees ranging from €0.50 for underwear to a potential €19.50 for a jacket by 2030. The law, passed in June, specifically targets companies such as Shein, Temu and AliExpress, citing environmental damage and low‑margin business practices. China’s commerce ministry has warned it could violate WTO rules, while French officials say the measure will not affect EU retailers like H&M or Zara. The trade‑busy Paris shopkeeper has raised concerns that the levy will strain consumer budgets amid a cost‑of‑living crisis.
France rolls out heavy fees on ultra‑fast fashion retailers
On Tuesday, the French government brought into force a new levy that will hit each fast‑fashion garment sold by beyond‑the‑border e‑commerce giants such as Shein, Temu and AliExpress. The legal framework, introduced by a June bill, classifies the operation as “ultra‑fast fashion” when a brand places high volumes of cheap clothes on the market and the cost of repairing those clothes relative to the retail price is minimal.
The fees are calculated on a scale: in 2026 French retailers will pay €0.50 for every underwear, €2 for a T‑shirt, €9 for a pair of jeans and €12 for a jacket. The cap is 50 % of the pre‑tax price, but the levy could rise to roughly €19.50 by 2030.
Minister of Economy Mathieu Lefevre said the harmful environmental impact of mass‑produced cheap clothing is well known, adding that the measure would level the playing field for French and other European brands that do not outsource to ultra‑fast fashion suppliers. However, it was clarified that the fee does not apply to retailers such as H&M or Zara.
China’s commerce ministry has called the law discriminatory and a trade barrier, warning it could conflict with World Trade Organization rules. The move comes amid mounting concerns over Shein’s rising valuation—$26.2 bn on its first day of public trading in Hong Kong—and its questioning supply‑chain ethics.
Shein’s spokesperson argued that the legislation would erode consumer purchasing power, especially during the cost‑of‑living crisis, while Temu—an e‑commerce marketplace—claimed it does not manufacture its own products and therefore is not a fast‑fashion company. French officials remain undecided on whether the substance of the levy will lead to industry pushback or further regulatory measures.
