The European Union will scrap a tax-free exemption on cheap imports from China to prevent online retailers such as Temu and Shein from flooding the market.

Brussels claimed that 96 per cent of goods sold on similar e-commerce platforms do not comply with the bloc’s safety standards and pose a risk to over 450 million people who live in the single market.

On Wednesday, the EU Commission announced it would seek to end an EU law that gives parcels worth less than €150 (£125) duty-free status.

According to figures published by the EU’s executive branch, 91 per cent of all imports into the bloc covered by the exemption came from China last year. The executive branch said there were more than 4.6 billion low-value shipments in the EU during that period, more than double the amount from the previous year.

The move mimics Donald Trump’s decision to end a “de minimis rule” that allows imports valued at less than $800 (£650) to enter the US duty-free, as long as they are packaged and addressed to individual buyers.

Critics say these loopholes in both Brussels and Washington have helped boost the prevalence of Chinese retailers selling goods such as cheap fashion, homeware and pet supplies.