As of January 1, Mexico has implemented new tariffs on products imported through e-commerce platforms like Amazon, Temu, and international courier services. The tariffs, ranging from 17% to 19%, coincide with a new rule requiring foreign e-commerce companies to pay Mexico’s 16% value-added tax (IVA) on goods sold within the country.
Key Tariff Details
Outlined in the General Rules of Foreign Trade for 2025, the tariffs apply as follows:
- 19% Tariff: Goods imported from countries without a trade agreement with Mexico, such as China, which is home to companies like Temu, Shein, and AliExpress.
- 19% Tariff: Goods valued above $1 from countries with a trade agreement, except for the United States and Canada.
- Exemptions for the U.S. and Canada (USMCA Partners):
- No tariff on goods valued at $50 or less.
- 17% tariff on goods valued between $50 and $117.
- 19% tariff on goods valued between $118 and $2,500.
Previously, no duties were required on goods within these value ranges, marking a significant policy shift.
Implications for Consumers and Businesses
The changes are expected to increase costs for imported goods. For example, a decorative LED desk lamp priced at 700 MXN on Amazon and shipped from China would incur a 19% tariff, raising its price to 833 MXN. If the 16% IVA is passed on to the customer, the final cost would be even higher.
Chinese e-commerce platforms, known for offering low-cost goods, often undercut Mexican-made products. This has led to concerns about the survival of domestic industries, particularly in textiles and clothing.
Protecting Mexican Industries
The new tariffs and IVA rules are part of Mexico’s broader effort to reduce reliance on imports from China and other Asian nations. Last month, the government announced a 35% tariff on imported textiles and clothing from non-trade agreement countries, aiming to:
- Support domestic production.
- Increase tax revenue in a country with one of the lowest collection rates among OECD nations.
- Strengthen relations with the incoming U.S. administration under President-elect Donald Trump.
Mexican authorities have also cracked down on counterfeit goods and unpaid import fees, raiding stores to seize such items.
Creating a Level Playing Field
By requiring foreign e-commerce companies to pay tariffs and taxes on imported goods, Mexico aims to create fairer competition between domestic and international businesses. These measures are expected to make locally produced goods more competitive, benefiting Mexican industries and workers.