The days of buying cheap clothing online and having it delivered to your house for almost nothing are coming to a close.
The European Union has raised safety concerns around cheap goods coming from China and is looking to phase out customs exemptions for these products.
Tech editor of the Irish Independent Adrian Weckler told The Anton Savage Show that goods under €150 had previously been exempt from the same customs attention as more expensive items.
“That has led sellers like Shein and Temu – whose growth has tripled in Ireland in the last two years – that has let them become one of the main online marketplaces,” he said.
“Now, if you talk to anyone under the age of, you know, 23, 24 – college students – they kit themselves out in gear.
“We’re talking about clothes and accessories and household stuff that costs typically four or five euro rather than €15 or €20 that you might get in Pennys – enormously popular.”
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Mr Weckler said that, while the language being used is very different, this will have a similar effect as US President Donald Trump’s recently imposed 10% tariff on Chinese goods.
“The motivation is different - Trump is obsessed with goods coming into the US, whether it’s Ireland or the EU or Mexico or Canada or China,” he said.
“He thinks that the US shouldn’t be running a trade deficit with any external country, so that’s the reason he’s putting the tariff on.
“With us in the EU, we’re couching it more in terms of quality standards and safety, that’s the way we’re framing it.
“But the effect could possible be the same.”
Local retailers
According to Mr Weckler, local retailers may see some benefits from the move.
“This is the old ‘Amazon argument’,” he said.
“The constant moaning you’ll hear from local retailers about Amazon is, ‘How are we expected to compete with these delivery [and product] prices that you get on Amazon’.
“It’s even worse from their point of view with Shein and Temu because the prices there are even cheaper, so they will be silently cheering on.”
Mr Weckler said he would expect environmentalists and those in the wellness community to also be pleased with the move.
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Main image: Customs team container control loading staff worker working together at port containers yard for shipping. Image: Quality Stock / Alamy. 9 January 2022