In brief
France has introduced a levy on the sale of ultra‑fast fashion items, levelling between €0.50 and €12 per piece in 2026 and climbing to nearly €20 by 2030. The measure targets Chinese‑owned e‑commerce giants such as Shein and Temu, exempting big European brands like H&M and Zara. French officials argue the fees curb the environmental and economic damage caused by cheap, high‑turnover clothing, while China’s commerce ministry calls the law discriminatory and a trade barrier. Industry stakeholders warn the levies could erode consumer purchasing power amid the cost‑of‑living crisis, and question whether the regulation could breach World Trade Organization rules. The new law will come into force with a rising fee schedule, reflecting the volume and repair‑cost ratios of each product.
France has stepped up its stance against ultra‑fast fashion by imposing a per‑garment levy that could bring the cost of a single clothing item to almost €20 by 2030.
The fees, which went live on Tuesday, are part of a legislative package enacted in June to regulate brands like Shein, Temu and AliExpress. They are designed to punish manufacturers for both the volume of sales and how cheaply the goods can be repaired, with rates ranging from 50 cents for underwear to €12 for jackets in 2026.
According to French Minister of Economy Mathieu Lefevre, the new tax targets the “harmful effects” of this industry on the environment and the economy. The French government later clarified that the measure does not apply to established European retailers such as H&M or Zara, a point that has been criticised for appearing to favour domestic sellers.
China’s commerce ministry has called the legislation “discriminatory” and a trade barrier that could violate World Trade Organization (WTO) rules, as the country sees it as singling out Chinese‑owned platforms.
The levy is expected to rise to a maximum of €19.50 per item – but remains capped at 50% of the pre‑tax price – and may take effect on a scale determined by each product’s sales volume and repair cost ratio.
Shein’s founder recently reported the company's valuation at $26.2bn after its Hong Kong IPO. The move has come as the brand grapples with intense competition, trade tensions and scrutiny over its supply‑chain ethics.
Meanwhile, the French government remains committed to its “environmental concerns” while warning that the levies will “worsen purchasing power” for consumers already feeling the pinch of a cost‑of‑living crisis.
For readers wanting to see the impact on physical retail, Shein’s first Paris store opened on November 5, 2025 in the BHV department store.
