France hits Shein and Temu with fast fashion fees

France has started imposing fees on fast‑fashion items that could reach nearly €20 per garment by 2030. The levy, which took effect on Tuesday, follows a June law aimed at curbing the sales of cheap clothing sold by e‑commerce giants such as Shein, Temu and AliExpress.

The new charge applies to “ultra‑fast fashion” companies that produce large volumes of low‑cost apparel. The fee is calculated on a banding system based on how many items a company sells and how expensive it is to repair a garment relative to its price.

In 2026 the charges will range from a €0.50 levy on underwear to €2 on T‑shirts, €9 on jeans and €12 on jackets. By 2030 the fee could climb to €19.50 per item, capped at 50% of the product’s pre‑tax price.

Chinese officials have called the law discriminatory and a trade barrier, saying it might violate WTO rules. French Minister Mathieu Lefèvre has said the “harmful effects of ultra‑fast fashion” on the environment and on the economy are “well known.”

The levy does not apply to mainstream European retailers such as H&M or Zara, sparking backlash from some who say the measure protects local businesses while targeting overseas brands.

Shein was valued at $26.2bn (£19.3bn) after its first day of public trading in Hong Kong earlier this month. The company, founded in China and headquartered in Singapore, has faced fierce competition, trade tensions and scrutiny over its supply chain ethics.

Shein told BBC it expected the legislation to reduce French consumers’ purchasing power at a time when many already feel the cost‑of‑living crisis. While Temu has denied being a fast‑fashion brand, it admits the proposed French law addresses environmental concerns.

The new fees mark a sharp shift toward heavier regulation of ultra‑fast fashion, highlighting France’s push to curb the environmental toll of cheap clothing and to protect local retailers. This bold tax initiative could reshape how global brands sell to the European market in the coming years.