In brief
France has launched a new tax on ultra‑fast fashion items, with charges that could reach almost €20 per garment in 2030. The levy, set in force Tuesday, applies specifically to companies like Shein, Temu and AliExpress, based on the volume of clothing sold and repair costs relative to price. French officials say the move will curb environmental harm and protect the economy from cheap fast‑fashion imports. China’s commerce ministry has warned the measure violates WTO principles, while Shein has criticized the fee as a blow to French consumers amid cost‑of‑living pressures.
France has begun taxing ultra‑fast fashion items, a move that could see costs rise to almost €20 per garment by 2030. The new levy, enacted this Tuesday, follows a June law aimed at companies such as Shein, Temu and AliExpress that flood the market with cheap apparel.
The taskforce for the legislation defines “ultra‑fast fashion” by two metrics: the volume of clothing a firm places on sale and the ratio of repair cost to purchase price. Each product receives a fee that scales with its score on these factors. For 2026, the charges range from a €0.50 levy on underwear to €2 for T‑shirts, €9 for jeans and €12 for a jacket.
The cap sits at 50% of the pre‑tax price, allowing the fee to climb to €19.50 in 2030, according to the government. French Minister Mathieu Lefevre stressed the “harmful effects of ultra‑fast fashion” on the environment and the national economy.
H&M and Zara will not fall under the levy, a fact announced by Lefevre’s office in July. The move has drawn criticism from China, which labels the law a discriminatory trade barrier that could breach WTO rules.
Shein, the Singapore‑based wholesale site founded in China, saw its stock debut at $26.2bn in Hong Kong this year. Following the levy, the brand warned the tax would diminish the purchasing power of French consumers amid an ongoing cost‑of‑living surge.
Temu, a Chinese‑owned marketplace, repeats the argument that it does not manufacture its own products and thus is not a fast‑fashion brand. Both companies have yet to provide detailed comments on how the new levy will affect their operations.
