Italy Pushes for Early EU Levy on Cheap E-Commerce Imports

Europe’s trade policy debate has found new urgency in Rome. On Wednesday, Italian Economy Minister Giancarlo Giorgetti called on the European Union to bring forward a planned levy on low-value e-commerce imports, urging that the measure be implemented by 2026, two years earlier than scheduled.

“The European Union must adopt strong and fast rules,” Giorgetti said, “against the invasion of cheap and unregulated products entering our markets.”

At the heart of his appeal lies a growing concern shared by many European policymakers — that the explosion of cross-border e-commerce is distorting the playing field for domestic producers and allowing a surge of low-quality, under-taxed goods to bypass fair regulatory oversight.

Under current EU rules, parcels imported from outside the bloc valued at less than €150 are often exempt from customs duties. That exemption, while designed to simplify trade, has turned into a loophole — one increasingly exploited by sellers on large global platforms who under-declare values or use fragmented logistics routes to minimize taxation.

Italy’s proposal to accelerate the levy’s introduction signals a shift in tone from Brussels’ incremental approach to one of economic defense. The measure would make all imports, regardless of declared value, subject to appropriate VAT and inspection, effectively ending an era of near-frictionless entry for billions of small packages shipped from Asia and beyond.

The European Commission has already agreed to introduce such a system by 2028, but Giorgetti’s call for a 2026 start reflects pressure from southern European economies, where traditional manufacturing and small enterprises are most exposed to cheap imports. “Every month of delay,” Giorgetti told parliament, “is a month in which European industry loses ground.”

The timing also comes amid renewed discussions in the EU about strategic autonomy — the idea that Europe must strengthen its capacity to compete in essential sectors without dependence on foreign suppliers. While the issue often centers on semiconductors, critical minerals, and defense, e-commerce is increasingly seen as another front in that struggle.

The shift toward digital retail has been dramatic. Between 2020 and 2024, parcel shipments into the EU from third countries rose by an estimated 80%, driven by fast fashion, consumer electronics, and home goods. Much of this growth has come from Chinese and Southeast Asian platforms whose low-cost models rely on bulk international logistics and minimal taxation.

For many European small and medium-sized businesses, this has become an existential problem. “It’s not just about competition,” said a trade policy researcher at Rome’s LUISS University. “It’s about survival. Domestic firms operate under European environmental, labor, and product safety rules — standards that many foreign exporters simply ignore.”

Economists note that while a levy on low-value parcels could raise consumer prices slightly, the broader goal is to restore regulatory fairness and reduce the incentive to exploit customs loopholes. The European Court of Auditors recently warned that e-commerce imports pose a “growing fiscal and compliance risk” to EU economies, estimating lost revenue at several billion euros annually.

Giorgetti’s remarks also reflect a broader anxiety among EU leaders as they face political pressure from voters who perceive the Union as too slow to protect its economic interests. The minister’s language — describing the influx of goods as an “invasion” — echoes a populist undertone that resonates strongly in Italy, where small businesses remain a cornerstone of the national identity.

The push for a 2026 levy will need consensus from EU finance ministers and formal approval by the European Parliament, where debates on consumer affordability and trade fairness are expected to intensify. Critics argue that rushing the measure could burden customs authorities, who are still modernizing digital systems to track small parcels effectively.

But supporters say the urgency is clear. “Europe can no longer afford regulatory naïveté,” said one Brussels-based trade official. “If we believe in our internal market, we must defend it.”

The issue also carries geopolitical implications. China remains the largest source of low-value goods entering the EU, and tightening import rules could heighten tensions as Europe seeks to balance economic pragmatism with industrial self-preservation.

For Giorgetti, however, the matter is more practical than political. In his words, Europe’s credibility “depends on its ability to ensure that the same rules apply to all — whether the product is made in Milan or Shenzhen.”

As the European economy adjusts to slower growth, rising protectionism, and digital disruption, the debate over parcel levies underscores a broader question: how the world’s second-largest trading bloc will reconcile its open-market ideals with the realities of a new, fiercely competitive global economy.