Mexico Raises Tariffs on Goods from China, Targeting Shein and Temu

Mexico's tax authority, SAT, has implemented new tariffs that could significantly impact popular online retailers like Shein and Temu, as reported by Reuters. The new measures, effective January 1, aim to strengthen surveillance of goods from Asia and combat "abusive practices" related to tax evasion.

The SAT's announcement revealed that goods entering Mexico via courier companies from countries lacking international treaties with Mexico will be subject to a 19% duty. This includes shipments originating from China, where Shein and Temu are based. Goods from Canada and the US, under the USMCA agreement, will face a 17% duty if the value exceeds $50 but remains below $117. Goods exceeding $1 from other countries with existing treaties will also be subject to a 19% duty.

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

The new tariffs coincide with a recent decree from President Claudia Sheinbaum's administration that increased import duties on various goods, including clothing, home goods, and outdoor items, by as much as 35%. Officials cited tax evasion and the need to level the playing field for Mexican companies as the rationale behind the tariff hikes.

Industry experts suggest that these changes could disrupt Mexico's IMMEX program, which allows foreign companies to import goods tax-free for specific purposes. The heightened tariffs could pose significant challenges for major e-commerce players like Shein and Temu, which compete with established US retailers such as Walmart and Amazon.

The implementation of these new tax guidelines comes ahead of US President-elect Donald Trump's inauguration on January 20. Trump has previously threatened to impose a 25% tariff on imports from Canada and Mexico. The extent to which these recent changes will influence Trump's economic policies remains to be seen.