France is hoping a new tax on ultra-fast fashion will dampen demand for cheap clothes. New legislation came into effect on September 1, after a long-running political debate and a final green light from the French parliament in June. It’s a step forward that may inspire progress elsewhere, although it is not expected to squash demand for low-value, environmentally damaging clothes overnight.
The law imposes extra costs on garments, shoes, and household textiles defined as “ultra-fast fashion”, essentially penalizing the volume of products on sale. It sits alongside the right to repair, which came into effect in June, and aims to make repair more affordable than buying new. Shein and Temu are targeted, while European retailers such as H&M or Zara are exempt — a distinction designed to support local businesses, which has proven controversial in sustainable fashion circles.
“Behind the rock-bottom prices of ultra-fashion lie very real costs: pollution, wasted rethat play by the rules,” ecological transition minister Monique Barbut said in a June government statement. The French move comes against the backdrop of a much-needed international drive to increase circularity and limit environmental damage from the fashion sector
Policymakers face an uphill battle
But policymakers face an uphill battle. EU textiles consumption increased from 17kg per person in 2019 to 19kg in 2022. And an estimated 4-9% of all textile products put on the European market are destroyed before use: between 264,000 and 594,000 tons every year, according to figures released by the European Environment Agency (EEA) in March 2025. The tax adds between €0.25 and €12 to ultra-fast fashion items in 2026, rising to between €2.20 and €20 by 2030 (capped at 50% of the product’s price).
Industry experts believe the law should suppress some demand, even if it is not expected to sound the death knell for cheap clothes straightaway. “Low-price sellers will have to take a hit on margins, increase prices, or enact a mix of both — none of which is good for the business model,” says Neil Saunders, managing director of retail at analytics consultancy Globaldata. Inevitably, some of that cost will be passed on to consumers.
“Taxes aimed at disrupting fast fashion’s artificial affordability, slowing down its pace and impact, and forcing companies to pay for the damage caused are welcome,” says Louise Gracia, professor of accounting at Warwick Business School in the UK. But Saunders cautions: “Even with the tax, the prices will still be cheaper than a lot of mainstream fashion, so no one should expect the fast fashion sector to disappear.”
This is not the only attempt to undermine the fast fashion business model.
The EU also closed the de minimis loophole,
The EU also closed the de minimis loophole, which previously allowed imported packages under the value of €150 to avoid customs charges, following the US. As of July 2026, a flat fee of €3 applies. Experts say such measures contributed to Shein debuting on the Hong Kong Stock Exchange this week with a significantly lower valuation than its prior peak. “Fast fashion giants like Shein and Temu will have their low-cost competitive advantage eroded by these taxes and advertising restrictions,” says Gracia.
“This financial pressure may encourage them to curb current approaches and investigate ways of improving their environmental eco-scores.” However, she notes that China has already labeled the measures discriminatory, stating they may violate World Trade Organization (WTO) principles. Unintended consequences
Samantha Harman, personal stylist and author of Just Get Dressed, agrees that with slim margins, ultra-fast fashion giants will have little choice but to increase prices — “unless it plans to sell significantly more product, which would be disastrously the opposite of what the levy aims to achieve.”
But while it represents a crackdown on the biggest volume producers, the law exposes a contradiction.
“My fear is that Shein and Temu, in this relatively new category of ultra-fast fashion, have somewhat made Zara, H&M, and other fast fashion brands look like the good guys,” says Harman, pointing to recent Asos-commissioned research that showed 64% of consumers think fashion offers too many options and not enough guidance. “These companies still produce thousands of apparel items each week, and it isn’t making any of us more stylish.”
Gracia agrees that the law could benefit European retailers: “A big strategic advantage is handed to European high street producers, who will be able to continue their mass production unchecked, and potentially increase market share with no real reform pressure.”
The question of whether the tax targets the right entities extends to customers, too, adds Gracia.
This is a regressive tax that unfairly penalizes
“This is a regressive tax that unfairly penalizes the low-income groups who rely on these low-price goods,” she explains. “In a cost of living crisis, many consumers are not able to prioritize environmental concerns over price sensitivity. The predominantly young and tech-savvy consumers of fast fashion may respond by merely bypassing these taxes by switching to untaxed domestic suppliers.”
After its initial introduction, the French law is set to evolve.
From January 1 2027, ultra-fast fashion brands will no longer be able to advertise their products, nor influencers promote them. Experts believe the example set by France could encourage regulatory steps in other countries. “We are already seeing it, albeit through different mechanisms like the ending of de minimis exemptions,” Saunders says, referring to a change to import rules to the US that’s hit Chinese manufacturers.
“I think there is a growing consciousness that competition needs to be fair, which is causing many governments to look at this issue — usually alongside sustainability concerns.”
Gracia says the French law could be seen as a catalyst for a regulatory domino effect. “Indeed, this was part of the intended broader impact,” she explains. “Such a legal blueprint arguably permits other counties to also use taxation and advertising restrictions to penalize foreign giants under the populist banner of environmental protectionism.”
The French government sees the step forward as a pioneering one.
“France is leading the way in Europe,” Barbut said in June. “We believe that a garment cannot be considered cheap when it comes at such a high cost to the planet.”
Source: www.vogue.com
