Mexico’s tax authority, SAT, introduced new tariffs on Tuesday aimed at strengthening the surveillance of goods imported from Asia. This move may significantly impact popular online retailers like Shein and Temu, as both companies are based in China, which does not have an international treaty with Mexico.
Under the new regulations, goods entering Mexico through courier companies from countries without such treaties will be subject to a 19% duty. Goods entering from Canada and the U.S., which are part of the United States-Mexico-Canada Agreement (USMCA), will face a 17% duty if their value exceeds $50 but is under $117. Additionally, goods valued over $1 from countries with international treaties with Mexico will also be charged a 19% duty.
The SAT stated that the new tariffs were designed to combat “abusive practices” and that goods previously exempt from duties will now be taxed. These changes, effective from January 1, align with broader tax reforms targeting e-commerce. On December 19, President Claudia Sheinbaum’s administration announced a decree imposing import duties of up to 35% on various goods, including clothing and home products, to curb tax evasion and ensure fair competition for local businesses.
This decision could disrupt Mexico’s IMMEX program, which allows foreign companies to import goods tax-free for U.S. market sales. E-commerce giants Shein and Temu, in particular, could face challenges due to the higher tariffs, as they compete with established U.S. retailers such as Walmart and Amazon.