Mexico's New Tariffs Will Affect Chinese E-Tailers

Mexico's tax authority SAT has just issued new tariffs last 31 December, which it said will strengthen the surveillance of goods from Asia, a measure that could impact popular online retailers like Shein and Temu.

Goods that enter Mexico via courier companies originating from countries that do not have an international treaty with Mexico will be subject to a duty of 19 percent, SAT said in a statement shared with reporters.

Mexico does not have an international treaty with China, where Shein and Temu are based.

Goods entering via courier companies from Canada and the U.S., which are part of the United States-Mexico-Canada trade agreement (USMCA), will be subject to a 17 percent duty if the value is greater than US$ 50 but does not exceed US$ 117.

A 19 percent duty will also apply to goods that exceed US$ 1 from other countries that have international treaties with Mexico, SAT said.

The tax authority said the tariffs will strengthen the "fight against abusive practices."

Previously, countries were not required to pay duties on goods of those values, according to a SAT spokesperson.

The new measures, which go into effect today, come amid a slew of new tax guidelines that impact e-commerce companies, including a 19 December decree by the administration of President Claudia Sheinbaum that increased import duties to as much as 35 percent on a swath of clothing, including dresses and shirts, home goods like blankets and curtains, as well as tents and awnings.

Officials said earlier this month that the move was aimed at preventing the importation of some products that evaded taxes, guaranteeing a level playing field for Mexican companies and protecting sector jobs.

Some industry experts have said the decree could mark a major disruption of Mexico's IMMEX program that allows foreign companies to import goods into Mexico tax-free for manufacturing, assembly or packaging for direct sale to U.S. shoppers.