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The 3-euro duty making AliExpress shopping more expensive
The EU applies a 3.63-euro charge per imported item, and some estimate prices have risen by 50%. What used to cost 2 euros now costs 5, and the corner shop wins.
The 3-euro duty that has made AliExpress more expensive
Why does something that used to cost 2 euros now cost 5? The answer lies in a surcharge the European Union applies to small packages imported from outside the bloc: about 3 euros plus VAT, in other words 3.63 euros for each item belonging to a category different from the rest. The measure, designed to curb the flood of low-value shipments, has hit hardest the kind of purchase that defined AliExpress: two-euro trinkets, cables, cases and spare parts that now cost more than at any corner shop.
According to one user, an order of three 2-euro knick-knacks went from 6 euros with free shipping to 15 euros. The product itself hasn't gone up: the product carries a tax that in practice triples its price. And that's where the problem begins.
How the 3.63-euro per-item surcharge works
The mechanism works by product category. If you order several units of the same item, the surcharge is applied only once. If you order different things, each one adds its own charge. In practice, with thousands of different categories, almost everything bought on AliExpress ends up paying the 3.63 euros per unit. Chinese sellers, for now, have failed to adapt: they haven't grouped categories or adjusted base prices to compensate.
Some argue the measure is aimed more at preventing customs from being flooded with two-euro packages than at protecting European industry, because an expensive item only goes up by those 3 euros. Others suggest Brussels deliberately created thousands of categories to prevent grouping. The truth is the result is the same: the small buyer pays.
The collapse in imports and the effect on prices
The available data point to a brutal collapse. In Estonia, after the measure came into force, imports of small packages fell by more than 90% in the trinc month. There is no reason to think the drop in Spain has been any smaller. The market has contracted, and with it the buying logic that sustained AliExpress.
The average price increase being cited is around 50% on platforms like AliExpress, Temu and Shein. For items costing 80 euros, the 3.63-euro rise is bearable. For what used to cost 5 euros, the surcharge has made it prohibitively expensive. And there lies the paradox: cheap is no longer cheap, and expensive still makes sense.
The European alternative and the price war in physical stores
While AliExpress gets more expensive, European low-cost chains have reacted. In stores like Pepco, Action or Alcampo, prices for clothing and accessories have fallen since the tariffs came into force. They started high, mirroring AliExpress's new prices, but the margin was so wide that competition eventually drove prices down. The trade war has left prices lower than before the tariffs on the Chinese platform.
The result is that shopping at the corner bazaar or a hardware store pays off, and you get the product sooner. The quality, moreover, is usually better. It's no consolation for those who saw AliExpress as a universal bazaar, but it's the market working.
The real cost: customs, holds and the fiscal cherry on top
The surcharge isn't just financial. Packages are held at customs, and deliveries are delayed indefinitely. On top of that, there's the possibility that another 2 euros per item will be added in the future. In short, the measure has turned a two-euro impulse purchase into an operation requiring planning, calculation and patience.
The final irony: the European consumer, already taxed to the bone, pays the price for a measure meant to protect them. Meanwhile, the Chinese keep manufacturing everything sold in those European stores that now seem so competitive.
Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication.
Read the full discussion (36 replies).