Mexico imposes new tariffs, possibly targeting Temu and SHEIN

On January 1, the Mexican General Tax Service (SAT) issued new regulations to impose a 17-19% tariff on small-value goods imported through express delivery companies. Chinese cross-border e-commerce companies “Temu” and “SHEIN” are considered targets, and the Mexican General Tax Service announced a “battle against smuggling” in a statement.

A 19% tariff will be imposed on all goods imported through express delivery companies from China and other places that have not signed international treaties with Mexico. If imported through express delivery companies in the United States and Canada that have signed the free trade agreement USMCA (United States-Mexico-Canada Agreement), a 17% tariff will be imposed on goods worth US$50 to US$117.

The Mexican General Tax Service revealed that the import of these small-value goods was not previously subject to tariffs. Mexico’s consumer price index (CPI) increase (inflation rate) has exceeded 4% and has remained high, and Chinese e-commerce has continued to rise with low prices as a weapon. Temu and SHEIN took advantage of the tariff mechanism of various countries where low-priced and small-value goods can be tax-free, and sold daily necessities produced in China to overseas countries with high prices, and grew rapidly with the help of this business model. The Biden administration of the United States also announced that it would adjust the tariff exemption measures for small-value goods. Countries are raising their vigilance against the two companies that have grown rapidly while taking advantage of inflation in Europe and the United States. For Mexico, the imposition of new tariffs is obviously a gesture of goodwill to the new Trump administration in the United States. In fact, after Trump, who has always accused Mexico of being tolerant of Chinese products, was confirmed to be re-elected as the US president, the Mexican government has taken a tough stance on Chinese products one after another. In late November 2024, after Trump announced a 25% tariff on goods imported from Mexico, the Sheinbaum government forcibly closed a large commercial building that sold a large number of illegal imported goods in the capital, Mexico City, and announced the removal of these illegal imported goods across Mexico. Mexican Economy Minister Marcelo Bissé strongly condemned the evasion of tariffs and illegal counterfeit goods that infringe copyrights, and publicly stated that “this is just the tip of the iceberg. We will find out what is deeper.” It also stressed the need to hold building owners and customs clearance operators accountable, showing a rare stern attitude and announcing that as of mid-December, 2 million pirated goods had been seized.

The Mexican government issued a decree in December 2024 to increase import tariffs on goods with a high share of Chinese imports, such as clothing, household goods, and food. Despite its intention to ease criticism from the United States, it is also a reality that it is difficult for Mexico to replace the supply capacity of Chinese companies with its own companies alone.

Canada, which signed the USMCA, also expressed dissatisfaction with Mexico’s policy toward China. As Trump is about to take office as president on January 20, it seems that he will continue to show a tough policy toward China.