Temu and Shein Cost Billions in Value Added and Taxes

Due to unfair competition from Temu and Shein, the German economy loses 2.4 bn euros in value added annually, 1.3 bn of which is in the retail sector. This is how the German Retail Association (HDE) summarizes a study it commissioned from the German Economic Institute (IW).

The two online platforms and retailers deliver 460,000 packages to Germany daily; across the EU, that figure is 12 million packages per day (2025). In doing so, they violate numerous EU rules, the association notes, describing this as unfair competition against which EU retailers stand no chance.

"The situation is clear. Despite grand promises, policymakers have still not delivered on this issue. Temu and Shein often fail to comply with legal and regulatory requirements, supply unsafe goods to our market - some of which pose health risks - and are driving many domestic retailers to the brink of ruin. Unlike Temu and Shein, local retailers are strictly monitored and adhere to all laws and tax rates," said HDE President Alexander von Preen.

According to the latest study, Temu and Shein are costing the federal government, states, and municipalities a total of 429 mio euros in tax revenue per year. Furthermore, this unfair competition is resulting in the loss of more than 40,000 jobs in Germany, 28,300 of which are in the retail sector.

"The current data clearly illustrates the gravity of the situation: Temu and Shein’s massive violations of regulations are causing extensive harm to the retail sector and the entire German economy. If policymakers do not finally take massive and tangible action here after years of standing by and watching, then I see a bleak future for Germany as a business location. If nothing else works, the plug must be pulled in the face of such massive rule violations. Competition is good, but it must be fair," von Preen continued.

In addition, the HDE is calling on customs authorities to send a clear signal - similar to the targeted inspections carried out in France upon the import of packages - and to increase the pressure of inspections. Furthermore, the association reiterates its demand that every retailer and every platform from third countries must have a solvent and physically reachable representative within the EU so that sanctions can be enforced in the event of violations and legally compliant behavior can be ensured.

The representative IW study commissioned by the HDE was conducted among 4,000 respondents aged 16 to 69. The survey was conducted in February 2026.