What: Italy’s €2 tax on low-value parcels from outside the EU, aimed at curbing cheap Chinese imports, has backfired as logistics companies reroute shipments to other EU countries, undermining the policy’s effectiveness.

Why it is important: The situation demonstrates how piecemeal national policies can have unintended consequences, shifting business to other countries and undermining the intended goals of protecting domestic markets.

Italy’s attempt to stem the influx of low-value parcels from Chinese e-commerce giants like Shein and Temu by imposing a €2 tax has led to a sharp drop in packages handled by Italian logistics networks, as companies reroute shipments through other EU countries to avoid the levy. This “boomerang effect” has resulted in lost business for Italian airports and logistics firms, while goods continue to enter Italy by truck, bypassing the tax and increasing pollution. The measure, intended to raise revenue and protect local industry, has instead exposed the limitations of unilateral national action within the EU single market, where goods can circulate freely once customs are cleared in another member state. The Italian experience underscores the complexity of regulating cross-border e-commerce and highlights the need for coordinated, EU-level solutions to ensure fair competition, effective enforcement, and sustainability in the face of integrated supply chains and digital commerce.

IADS Notes: Italy’s €2 tax on low-value parcels from outside the EU is part of a broader European effort to address the surge of cheap imports from Chinese e-commerce platforms like Shein and Temu, as documented by multiple IADS sources. Inside Retail (May 2025) details how the EU’s new handling fee targets the unprecedented volume of Chinese parcels, which doubled to 4.6 billion in 2024, with 91% originating from China. However, the Italian measure has had unintended consequences, as logistics companies reroute packages through other EU countries to avoid the levy, leading to a sharp drop in parcel volumes handled by Italian logistics networks and airports. WWD (December 2025) and Financial Times (October 2025) confirm that the EU will implement a €3 fee on all parcels under €150 from July 2026 and is considering abolishing the €150 duty-free threshold to restore market balance for European retailers. Journal du Net (April 2025) and Inside Retail (October 2025) highlight how the influx of redirected Chinese shipments, triggered by US tariffs and the end of the de minimis exemption, has intensified price competition and prompted further regulatory scrutiny. The Italian government’s move is also part of a broader strategy to defend local industry standards, with new Extended Producer Responsibility schemes and increased oversight of supply chain practices and labor rights. As France and other EU countries prepare their own responses, the situation underscores the complexity of regulating cross-border e-commerce within the single market and the urgent need for coordinated, EU-level solutions to ensure fair competition, consumer protection, and sustainability.

Italy’s €2 tax on small parcels misfires