International News

Mexico Imposes 17-19% Tariffs

Author : Bozhou Marine

Update time : 2025-01-07 16:01:20

The Mexican General Taxation Administration introduced a series of new tariff policies on January 1. The most noteworthy one is the 17% to 19% tariff on small-value goods imported through express delivery companies, and this move may affect popular online retailers such as Shein and Temu.

Specifically, according to the United States-Mexico-Canada Trade Agreement,
goods imported through Canadian and American express delivery companies with a value between US$50 and US$117 will be subject to a 17% tariff;
and for goods from other countries that have signed international treaties with Mexico, goods worth more than US$1 will also be subject to a 19% tariff.

It is worth noting that China, as one of the countries that has not signed relevant international treaties with Mexico, its domestic cross-border e-commerce platforms such as Shein and Temu may be directly affected by this policy.
The Mexican government said that the main purpose of this new policy is to prevent the import of tax evasion products and strengthen the fight against abuse to ensure a fair competitive environment for Mexican local companies and protect employment in related industries. In fact, this is not the first time that the Mexican government has taken strict measures against imported goods.

In fact, by the end of 2024, Mexico had already issued a series of new trade policies, including a 35% import tariff on more than 100 types of imported textiles and a 16% value-added tax on cross-border e-commerce platforms. The implementation of these policies will undoubtedly have a direct impact on the market competition environment of Chinese exporters and global e-commerce platforms in Mexico.

Global tariff policies deeply affect cross-border e-commerce

As one of the fastest-growing e-commerce markets in the world, Mexico has attracted the layout of many cross-border e-commerce platforms.
Amazon, Walmart and Meikeduo occupy the top three e-commerce platforms in Mexico, and platforms such as AliExpress, Temu, Shein and Shopee are also following closely, showing strong market competitiveness.

Shein and Temu, in particular, have a considerable market share in Mexico. Since entering the Mexican market in 2018, Shein has quickly become a leader in the local fashion field; and since Temu went online in Mexico in May 2023, its platform traffic has achieved exponential growth in just six months through measures such as low-price subsidies, free delivery and returns.

However, the impact of tariff policies on cross-border e-commerce cannot be ignored. Not only has Mexico taken relevant measures, the United States also intends to cancel the duty-free treatment for certain low-value goods, the European Union is preparing new measures for cross-border e-commerce platforms, and South Africa will impose a 45% import tax plus value-added tax on all imported clothing from July 1, 2024. The tariff on low-value packages was previously 20%. Faced with the challenges of these overseas policy challenges, cross-border e-commerce platforms need to actively respond.

A Temu spokesperson once said that the platform's competitive prices are due to supply chain efficiency and operational expertise, rather than circumventing rules or exploiting tax loopholes. Shein has joined the "Section 321 Data Pilot Program" launched by the U.S. Customs and Border Protection to improve operational transparency and meet global trade compliance standards. These measures provide cross-border e-commerce platforms with reference ideas for responding to policy challenges.

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