Chinese online retailers, such as Temu and Shein, are likely to bear the brunt of Italy's planned extra levy on cheap foreign fast fashion imports, Reuters reported late Wednesday, citing sources.

The Italian government seeks to protect its own fashion industry from unfair competition amid the popularity of fast fashion retailing, the report said.

In a statement after a meeting with fashion industry representatives, Industry Minister Adolfo Urso pledged that they will introduce a measure tackling the ultra-fast fashion phenomenon that affects local producers and puts consumers at risk, the report said.

The government may also adopt a scheme in the European Union's Extended Producer Responsibility directive, where manufacturers will cover the costs of collecting, sorting, and recycling their products that have become waste, the sources told Reuters.

Both Shein and Temu are yet to reply to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)