The Mexican government announced on Tuesday (July 29th) that the import tax rate for small packages from countries such as China that do not have a free trade agreement with Mexico will be increased from 19% to 33.5%. This move primarily impacts well-known businesses including Chinese e-commerce platforms Shein and Temu.
Under the new regulations, the adjustment will take effect on August 15th of this year and will apply to goods imported through express delivery or parcel services with a value not exceeding $2,500 USD. For example, for a Chinese order worth $500 USD, the tax will increase from $95 USD to $167.5 USD.
Meanwhile, shipments from the United States and Canada will continue to enjoy preferential tax rates under the US-Mexico-Canada Agreement (USMCA): 17% for items valued between $50 and $117 USD, 19% for items over $117 USD, and items below $50 USD are exempt from tax.
Earlier this year, Mexico had already strengthened measures to manage low-cost imports, including increasing tariffs and enhancing inspections, aimed at protecting domestic labor-intensive industries such as textiles and footwear from the influx of cheap products from regions like Asia and safeguarding local production and employment.
According to an official announcement released on Monday evening, the latest round of adjustments represents a further tightening of the policies implemented earlier this year. It is widely believed that this move is a response to the U.S. accusing China of using Mexico to reroute low-cost products to evade tariffs. The U.S. previously announced a 30% tariff increase on Mexican goods starting from August 1st, and the two countries are currently engaged in final negotiations.
Diego Marroquin, a researcher at the Center for Strategic and International Studies (CSIS) in Washington, told Bloomberg that Mexican President Claudia Sheinbaum’s government’s actions can serve as a bargaining chip in negotiations with the United States, increase tax revenue, block China’s excess production capacity, and protect domestic industries.
Former Mexican Deputy Minister of Foreign Trade, Juan Carlos Baker, pointed out that while raising the tax rate may help the government increase fiscal revenue and combat unfair competition, the ultimate cost will be passed on to consumers, especially low to middle-income groups who rely on cross-border e-commerce platforms like Shein and Temu.