EU rules on small packages and steel target trade imbalance with China

Parcel fee targets low-value imports

The European Commission has introduced a €3 charge on low-value parcels entering the EU, ending the long-standing exemption for goods worth less than €150.

The measure is aimed at the surge in small e-commerce shipments into Europe, many of them from China. AP reported that 5.9 billion parcels were imported into the EU in 2025, highlighting the scale of the flow Brussels is trying to slow.

Le Monde reported that more than 90% of the 12 million parcels under €150 entering Europe each day come from China. The Commission says the fee is intended to restore fairness for European businesses and better protect consumers.

Steel protections tighten

The Commission also lowered tariff-free steel import quotas and raised duties on volumes above the quota to 50%.

According to AP and The Wall Street Journal, the new regime cuts tariff-free steel import volumes to 18.3 million metric tons annually. WSJ also reported that exporters will have to disclose where steel is melted and poured, adding a new traceability requirement.

The European Commission framed the steel changes as a response to global overcapacity and unfair competition. The goal is to shield EU mills from cheap imports while tightening oversight of where steel is produced and processed.

Trade pressure and timing

The parcel and steel measures were rolled out together on July 1 as part of a broader effort to rebalance trade with China. The two steps address different parts of the same problem: a flood of low-value consumer shipments and pressure on heavy industry from cheap steel.

The timing matters because the rules follow a run of reporting late on June 30 and early on July 1 that showed Brussels preparing to act. AP reported the package at 12:05 UTC on July 1, while other outlets had already described the steel changes and the parcel fee as imminent or in force.

Ursula von der Leyen, the European Commission president, said the parcel fee is meant to restore fairness for European businesses and better protect consumers. Maroš Šefčovič and other Commission officials have tied the broader push to concerns about trade imbalance and Chinese competition.

What changes for traders

For e-commerce sellers, the new parcel charge could increase costs on low-value imports and affect fast-growing Chinese platforms such as Temu and Shein. The commission’s move is especially significant because the old sub-€150 exemption had made small shipments cheap to move into the bloc.

For steel producers, the lower quota and 50% duty above quota could shield European mills from some of the global oversupply that has pressured prices. The tighter traceability rule may also make it harder for exporters to obscure where steel was made.

The Guardian reported that 13 countries with EU free-trade agreements will get more favorable quota treatment than other suppliers. That could matter for sourcing decisions and for which exporters can keep access to the EU market on better terms.

Next steps

The main open question is how the new parcel charge will be enforced across EU customs systems. Brussels has not yet fully spelled out every operational detail.

Another question is whether the steel quota reductions will be adjusted for individual trading partners as implementation continues. Any changes could shift trade flows further, especially if suppliers outside the EU seek better treatment.

China is also likely to respond formally, and the package could become another point of friction in the wider EU-China trade relationship. For now, Brussels is signaling that it sees the measures as defensive rather than punitive: an attempt to rebalance trade and protect domestic industry from cheap imports.