Norway announced plans to cut import tariffs on clothes and textiles sold in Norwegian shops to help retailers compete with a rise in cheap fashion imports from China and elsewhere.
The government set out the proposal in its draft budget for 2027, which it presented today.
The move will set a single 5% import duty for all types of clothing, down from rates of up to 10.7% at present.
Oslo presented the cut as a way to help Norwegian bricks-and-mortar retailers compete with e-commerce platforms such as China’s Temu and Shein.
These online sellers benefit from a simplified registration process that allows them to import goods duty-free.
Norway’s approach contrasts with that of the EU and the United States.
Both have legislated to eliminate ‘de minimis’ rules exempting small parcels from customs duties. Their aim is to close the competitive gap between online retailers and traditional shops.
Norway’s tariff cuts aim to address part of the same problem.
The cuts will cover clothes as well as textile products such as carpets, towels and curtains. Norway currently applies six different customs duty rates to these goods, ranging from 5.6% to 10.7% of import value.
Footwear already enters Norway tariff-free.
Textiles are the only industrial products on which Oslo still charges import tariffs. In contrast, high tariffs and quotas still protect the Norwegian market for agri-food products.
Switzerland, Norway’s partner in the European Free Trade Association, eliminated all tariffs on industrial goods on 1 January 2024.
