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(Bloomberg) — Mexico is raising import taxes on small online purchases from companies such as Chinese retailers Shein Group Ltd. and Temu as negotiations to avoid US tariffs go down to the wire.
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The new 33.5% levy, raised from a prior 19%, will apply to goods imported from China and other countries with which Mexico has no trade agreement. Products coming from the US and Canada via courier service will continue to pay a 17% duty if priced between $50 and $117. Those priced below that range will remain exempt while those above will now pay a 19% tax.
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The decision, published in the official gazette Monday evening, is an update to the international trade rules Mexico implemented earlier this year, widely seen as a response to US accusations that China was using Mexico as a back door to send cheap products into its northern neighbor.
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Shein and Temu didn’t immediately reply to requests for comment.
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Last year, Mexico increased tariffs on textile products coming from countries like China and stepped up raids on merchants that imported goods from Asian nations without paying taxes or obtaining the required permits.
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The higher import tax may be part of a strategy to rein in unfair competition or increase government revenue, but it will also have an impact on low-income consumers, said Juan Carlos Baker, Mexico’s former undersecretary for foreign trade, who helped negotiate the US-Mexico-Canada free trade agreement.
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“This tax increase will ultimately be paid by consumers, as the people who use these types of platforms to buy products tend to be the most disadvantaged,” he said. “Goods are becoming more expensive for the people who need them most.”
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Mexico has been in intense talks with the US, seeking to avoid the 30% tariffs President Donald Trump has threatened to impose on the country starting Aug. 1.
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Today’s move may be part of that negotiation strategy, said Diego Marroquin, fellow at the Center for Strategic and International Studies. “Sheinbaum’s administration also seeks to increase tax revenue, close the doors to Chinese overcapacity and protect the domestic industry.”
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