France targets fast‑fashion giants with new levies

The French government unveiled a fee system on ultra‑fast fashion that could reach nearly €20 per garment by 2030. The measure, backed by a law passed in June, aims to curb the sale of inexpensive clothing from sites such as Shein, Temu and AliExpress.

Under the new rules, the levy scales with two factors: the volume of items sold and how quickly they degrade relative to their price. In 2026, the charge will rise from €0.50 for underwear to €12 for jackets, with a ceiling of 50 % of the pre‑tax price.

Shein, a Chinese‑Singapore‑headquartered retailer, was valued at $26.2 bn on its Hong Kong debut and faces increasing scrutiny over supply‑chain ethics. The company said the measures would “worsen consumer purchasing power” amid a cost‑of‑living crisis.

China’s commerce ministry has called the legislation a trade barrier that could breach World Trade Organization norms. France’s economy minister, Mathieu Lefevre, defended the levy as essential to protect the environment and the French market.

Interior of Shein's first physical store at the BHV Marais department department in Paris

Trade tensions rise as global e‑commerce platforms push to expand, while France tightens controls to preserve local fashion ecosystems.