Mexico unveils new tariffs, popular e-tailers like Shein, Temu may be in crosshairs

MEXICO CITY: Mexico’s tax authority SAT issued new tariffs on Tuesday, 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 per cent, 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 US, which are part of the United States-Mexico-Canada trade agreement (USMCA), will be subject to a 17 per cent duty if the value is greater than $50 but does not exceed $117.

A 19 per cent duty will also apply to goods that exceed $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 on January 1, come amid a slew of new tax guidelines that impact e-commerce companies, including a December 19 decree by the administration of President Claudia Sheinbaum that increased import duties to as much as 35 per cent 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 programme that allows foreign companies to import goods into Mexico tax-free for manufacturing, assembly or packaging for direct sale to US shoppers.

E-commerce powerhouses Shein and Temu, which compete with US retailers like Walmart and Amazon, could be particularly vulnerable to the impacts of higher tariffs.The decree takes effect ahead of the Jan 20 inauguration of US President-elect Donald Trump, who has threatened to slap a 25 per cent tariff on imports from Canada and Mexico.