Mexico's New Tariffs: Impacting Asian Goods and Online Retail Giants

Mexico's tax authority, SAT, introduces new tariffs targeting goods from Asia, particularly affecting online retailers like Shein and Temu. The measure imposes a 19% duty on imports from non-treaty countries, aiming to curb tax evasion and protect local businesses. The changes are effective January 1.

Mexico's tax authority, the SAT, has issued new tariffs designed to monitor and control imports from Asia more effectively, a move that could hit popular online retailers like Shein and Temu hard. These retailers, whose goods come from countries that lack a treaty with Mexico, will now face a duty rate of 19%, according to an SAT statement released to journalists.

As Mexico does not maintain an international treaty with China, where Shein and Temu originate, goods entering from these territories through courier services will incur substantial duties. In contrast, goods from Canada and the U.S. under the USMCA agreement will have a lesser duty of 17%, provided their value falls between $50 and $117.

This tariff adjustment, effective from January 1, is part of broader regulation changes intended to close tax loopholes and bolster the domestic market. President Claudia Sheinbaum's administration has also issued a decree increasing import duties on a variety of items, potentially affecting the IMMEX program that allows duty-free imports for manufacturing.

(With inputs from agencies.)