MEXICO CITY - Mexico's tax authority SAT issued new tariffs on December 31, aimed at enhancing surveillance of goods from Asia, which may affect prominent online retailers such as Shein and Temu.
According to SAT, goods entering Mexico via courier companies from countries without an international treaty with Mexico will incur a 19 percent duty. Notably, Mexico lacks such a treaty with China, where Shein and Temu are headquartered.
For goods arriving from Canada and the US, which are part of the United States-Mexico-Canada trade agreement (USMCA), a 17 percent duty will apply if the value exceeds US$50 but does not surpass US$117. Additionally, a 19 percent duty will be applied to goods valued over US$1 from other countries that have international treaties with Mexico.
The tax authority stated that these tariffs would bolster the 'fight against abusive practices.' Previously, there were no duties required on goods of these values, as noted by a SAT spokesperson.
The new regulations, effective January 1, coincide with a series of tax guidelines affecting e-commerce, including a December 19 decree by President Claudia Sheinbaum's administration that raised import duties to as high as 35 percent on various clothing items and home goods.
Officials indicated that the intention behind these measures is to prevent the importation of products that evade taxes, ensure fair competition for Mexican companies, and safeguard jobs in the sector.
Industry experts have suggested that the decree could significantly disrupt Mexico's IMMEX program, which allows foreign entities to import goods tax-free for manufacturing, assembly, or packaging for sale to US consumers.
Online giants Shein and Temu, competing with US retailers like Walmart and Amazon, may be particularly affected by the increased tariffs.