Mexico presents new tariffs; Popular e-tailers like Shein and Temu may be in the crosshairs

Mexico's tax authority, SAT, issued new tariffs on Tuesday, which it said will strengthen surveillance of products coming from Asia, a move that could hit popular online retailers such as Shein and Temu.

Goods entering Mexico through courier companies from countries that do not have an international treaty with Mexico will be subject to a 19% tariff, the SAT said in a statement shared with journalists.

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

Goods entering through courier companies from Canada and the United States, which are part of the United States-Mexico-Canada (USMCA) trade agreement, will be subject to a 17% tariff if the value is more than $50 but it does not exceed 117 dollars.

A 19% tariff will also be applied to merchandise that exceeds the dollar coming from other countries that have international treaties with Mexico, said the SAT.

The tax authority said the tariffs will strengthen the “fight against abusive practices.”

Previously, countries were not required to pay taxes on goods of these values, according to a SAT spokesperson.

The new measures, which will take effect on January 1, come amid a series of new tax guidelines affecting e-commerce companies, including a December 19 decree from President Claudia Sheinbaum's administration that increased Import duties up to 35.% on a range of clothing, including dresses and shirts, household items such as blankets and curtains, as well as tents and awnings.

Authorities said earlier this month that the measure was aimed at preventing the importation of some products that evaded taxes, ensuring a level playing field for Mexican companies and protecting jobs in the sector.

Some industry experts have said the decree could mark a major disruption to Mexico's IMMEX program that allows foreign companies to import goods into Mexico duty-free for manufacturing, assembly or packaging for direct sale to U.S. buyers.

E-commerce powerhouses Shein and Temu, which compete with US retailers such as Walmart and Amazon, could be particularly vulnerable to the impacts of higher tariffs.

The decree comes into effect before the inauguration of US President-elect Donald Trump on January 20, who has threatened to impose a 25% tariff on imports from Canada and Mexico.