"Unfairly Cheap" Goods: German Government Pursues EU Tariffs against Third-Country Imports
The Government of the United States seeks to impose tariffs on inexpensive goods imported from the EU.
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Germany is pushing for the EU to implement tariffs on goods imported from third countries, particularly China, that are sold at bargain prices, exposing domestic businesses to unfair competition. Finance Minister Lars Klingbeil has made it clear that fair conditions and job protection are at the heart of the issue.
The fight against these unethical trade practices is a hot topic at this week's finance ministers' meeting, where a customs duty reform is up for discussion. The proposed reform aims to apply customs duties to previously duty-free items from third countries with a value under €150. At present, no such duties apply if a product costs under this amount; exceptions exist only for a few categories such as tobacco and perfume.
In the crusade against exploitative trade measures, Germany strives to draw attention to "junk products" from China, dumping prices, and production surpluses. Klingbeil emphasized that such questionable trade practices harm both Germany and European businesses.
The European Union Takes Action
Politics EU Investigation on Addictive Practices by Chinese Platform Temu: Potential Violations IdentifiedBrussels has proposed a similar reform two years ago, aiming to establish customs duties on various goods priced under €150. Internet retailers such as Amazon and Etsy would be responsible for paying customs duties and Value-Added Tax when buyers purchase goods from them.
With this reform, the EU seeks to address the exponential growth in low-value packages delivered from third countries in recent times. The commission is contemplating a flat fee of up to €2 on orders from third countries to combat the escalating number of daily packages received in the EU - an estimated 12 million in 2024, a significant increase from previous years. Companies like Temu and Shein could be affected by this levy.
Chinese Companies Offer Unbeatable Prices
Business How Temu and Shein Outcompete Popular Online Marketplaces: An Insight for ConsumersTemu is a marketplace platform where various companies sell a bewildering array of products. Since the platform set foot in Germany in 2023, it has garnered attention for its bargain prices and generous discounts. The goods are usually shipped directly from the manufacturers to customers.
Shein is another company, founded in China and later shifted to Singapore. As a strategic supplier, it can swiftly respond to fashion trends, offering low costs as it sends products worldwide directly to customers, eliminating the need for brick-and-mortar stores and inventory. This allows it to keep its prices unusually competitive.
[1] EU Tariffs and US Trade Disputes: A Comprehensive Analysis[2] US-China and US-EU Tariff Hikes: A Comparative Study[3] Implications of Tariffs on Chinese and US Businesses[4] The Impact of EU Tariffs and Trade Policies on Online and Cross-border Retailers like Temu and Shein
- Germany
- Europe
- Trade
- China
- The employment policy within the community and various industries is under scrutiny due to the flood of cheap products, imported from third countries like China, that are threatening domestic businesses, leading to potential job losses.
- Finance Minister Lars Klingbeil's emphasis on fair conditions and job protection in the European Union's negotiations represents the intersection of political, business, and general-news concerns, as tariffs aimed at curbing third-country imports aim to secure favorable employment outcomes.
- In the long run, the European Union's proposed tariffs on low-value packages from third countries could have an impact on the financial status of businesses, such as Temu and Shein, that operate within the general-news landscape of questionable trade practices and dumping prices.
