Mexico’s tax authority, SAT, announced new tariffs on Tuesday aimed at enhancing the monitoring of goods arriving from Asia, a move likely to affect popular online retailers such as Shein and Temu.
Under the new policy, goods shipped to Mexico via courier companies from countries lacking an international trade agreement with Mexico will face a 19% duty, SAT stated. Notably, Mexico does not have such agreements with China, the home base of Shein and Temu.
By contrast, goods sent from Canada and the U.S., which are part of the United States-Mexico-Canada Agreement (USMCA), will incur a 17% duty if valued between $50 and $117. For goods exceeding $1 from countries with trade agreements with Mexico, a 19% duty will apply.
SAT emphasized that these measures, effective January 1, are designed to combat “abusive practices.” Previously, goods within these value ranges were exempt from duties, according to a spokesperson for the tax authority.
These changes are part of broader tax reforms impacting e-commerce. A separate decree issued on December 19 by President Claudia Sheinbaum’s administration raised import duties on items such as clothing, home goods, and tents to as high as 35%. Officials have explained that these steps aim to prevent tax evasion, ensure fair competition for Mexican businesses, and safeguard jobs.
However, some experts warn that the new rules could disrupt Mexico’s IMMEX program, which permits foreign companies to import goods duty-free for manufacturing and export to the U.S. E-commerce giants like Shein and Temu, which compete with U.S. retailers like Walmart and Amazon, may face significant challenges due to the increased tariffs.
The decree comes shortly before the January 20 inauguration of U.S. President-elect Donald Trump, who has threatened to impose a 25% tariff on imports from Canada and Mexico.
The potential impacts of these measures extend beyond e-commerce platforms, as they may reshape trade dynamics between Mexico, its trading partners, and the broader global market. Critics argue that while the tariffs are intended to promote fairness and protect local industries, they could lead to higher costs for consumers and reduced access to competitively priced products.
For Shein and Temu, which rely heavily on low-cost imports and streamlined logistics, the higher tariffs could force changes to their pricing strategies or sourcing models. The additional costs might either be passed on to consumers or absorbed by the companies, potentially affecting profitability and market share in Mexico.
Meanwhile, the broader retail and manufacturing sectors in Mexico are closely monitoring the changes. Industry representatives have raised concerns that the stricter import guidelines might create bottlenecks in supply chains, particularly for smaller businesses that depend on imported goods.
The government, however, remains firm in its stance. Officials argue that these measures are necessary to address longstanding challenges in enforcing tax compliance among international sellers and to curb unfair practices such as under-invoicing and misclassification of imports.
As these new policies take effect, they are expected to provoke legal and logistical responses from affected businesses. E-commerce giants, trade associations, and international suppliers may challenge the measures or seek alternative solutions, such as reconfiguring supply chains or lobbying for adjustments to the regulations.
The coming months will reveal how these changes influence Mexico’s economic landscape, consumer behavior, and relationships with global trade partners. Both policymakers and businesses are bracing for a period of adaptation as the implications of the new tariffs unfold.
