Shein and Temu Hit by Mexico’s New Tariffs on Asian Imports Amid Trade Crackdown

Mexico has introduced a 19% tariff on goods entering from non-treaty countries, including China, home to Shein and Temu. The measures aim to protect domestic industries and counter tax evasion, impacting e-commerce companies reliant on low-cost imports.

SAT Targets Asian Imports with New Duties

Online stores like Shein and Temu may feel the pinch as a result of new duties imposed by Mexico's tax agency SAT on Tuesday. The agency claims the taxes will increase the monitoring of Asian imports.

In a statement shared with the media, SAT announced that goods entering Mexico through courier services from countries without an international treaty with Mexico will be subject to a 19% charge, Reuters reports.

China-Based Retailers Like Shein and Temu Affected

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

If the value of goods entering via courier firms from the US and Canada, which are members of the USMCA trade deal, is more than $50 but less than $117, a duty of 17% will be applied.

Goods from other nations with international treaties with Mexico that surpass $1 will also be subject to a 19% levy, according to SAT.

Crackdown on Abusive Practices Through Tariffs

Officials in charge of taxes have stated that the levies will bolster efforts to "fight against abusive practices."

A representative from SAT said that nations were exempt from paying tariffs on commodities with those values in the past.

Higher Import Duties on Clothing and Home Goods

Import duties on a wide range of clothing, home goods, tents, and awnings were raised to as much as 35% in a Dec. 19 decree by President Claudia Sheinbaum's administration. The new measures, which will take effect on Jan. 1, are part of a slew of new tax guidelines that affect e-commerce companies.

Achieving a level playing field for Mexican enterprises and safeguarding sector jobs were stated earlier this month as the goals of the action. It also sought to restrict the entry of certain products that dodged taxes.

Concerns About the IMMEX Program’s Future

The IMMEX program permits foreign companies to import items into Mexico tax-free for the purposes of manufacturing, assembly, or packaging, with the intention of directly selling them to consumers in the United States. However, several industry experts have expressed concerns that this decree could significantly disrupt this program.

Shein and Temu, two of the largest e-commerce platforms in the world, might be especially hit hard by increased tariffs because they compete with Amazon and Walmart in the United States.

The executive order goes into force before U.S. President-elect Donald Trump's inauguration on January 20. Trump has threatened to impose a 25% tariff on imports from Mexico and Canada.