In brief
France has introduced a levy on ultra‑fast fashion items sold by Shein, Temu and similar e‑commerce brands. The new tax could rise to about €20 per garment by 2030, but will not affect mainstream retailers like H&M or Zara. China has blasted the rule as a trade barrier, while French officials point to its environmental impact. Shein’s first physical store opened in Paris in 2025, and the company’s market value hit $26bn after its first day on the stock market.
France imposes fees on Shein and Temu
France has started charging fast‑fashion retailers like Shein and Temu for every item sold. The new tax, which began Tuesday, could reach up to €19.50 (about $22) per garment by 2030.
The rule was part of a June law aimed at curbing the surge of ultra‑fast fashion, which sells clothing in gigantic volumes online for very low prices.
French officials say these companies hurt the environment and the local economy, whereas China has called the law a trade barrier that violates WTO rules.
Under the law, the fee depends on how many clothes are sold in France and how costly it is to repair the items. For 2026, the daily charge ranges from €0.50 on underwear to €12 on a jacket.
Mainstream retailers such as H&M and Zara are exempt from the levy, sparking debate about whether the law favors European brands.
Shein’s first physical shop opened in the Paris department store BHV in 2025, and the company recently jumped to a $26bn valuation after its first day trading on the Hong Kong stock market.
The leader of France’s trade ministry, Mathieu Lefevre, says the “harmful effects of ultra‑fast fashion” are well known. Simultaneously, Shein has warned that the new law will “worsen the purchasing power of French consumers” amid a cost‑of‑living crisis.
Read more: Shein valued at $26bn after long‑awaited stock market debut
