In brief
France has rolled out a new levy targeting so‑called ultra‑fast fashion retailers such as Shein and Temu, with per‑item fees rising to nearly €20 by 2030. The fee, introduced Tuesday, builds on a June law that classifies brands by volume sold and repair cost relative to price. While French officials claim the move curbs environmental harm, China’s commerce ministry labels it discriminatory. The policy exempts mainstream brands like H&M and Zara, flagging a selective crackdown on Chinese‑based shippers.
France has begun imposing steep fees on fast‑fashion brands, a move that could see the cost of a single garment jump to almost €20 by 2030. The levy, officially rolled out on Tuesday, follows a June law that earmarks “ultra‑fast fashion” firms like Shein, Temu and AliExpress as prohibited.
Under the new rules, brands are penalised based on two criteria: the sheer volume of clothing they take to market, and the cost of repairing the items compared to their retail price. The per‑item charge scales across product categories—from a modest €0.50 on underwear to a hefty €12 on jackets.
French officials stress that the measure aims to mitigate “harmful effects of ultra‑fast fashion” on both the environment and the economy. China’s commerce ministry, however, has called the law a potential trade barrier that may breach World Trade Organization norms.
While the levy will not apply to European retailers such as H&M or Zara, the policy appears to shift focus onto Asian‑based firms. The effects are already ring‑fencing consumer buying power amid the cost‑of‑living crisis.
Shein’s first public listing in Hong Kong valued the company at $26.2 bn, a far cry from its former $100 bn estimate. The brand fears the new French legislation will erode its competitive edge and increase Parisian consumer costs.
Both Shein and Temu have issued statements acknowledging environmental concerns while defending their business models, with Temu – a marketplace rather than a manufacturer – arguing the legislation mischaracterises its operations. The story unfolds as the global fashion industry watches France’s regulatory gamble unfold.
