Mexico Expands Import Pricing Rules to Combat Tax Evasion

Mexico’s Ministry of Economy (SE) has announced plans to expand and adjust reference pricing mechanisms for a broader range of imported products to combat tax evasion and under-invoicing amid shifting cross-border trade policies across North America.

Starting in May, Mexico will update its reference pricing system, which detects unusually low customs declarations, to include categories such as sports equipment, paper, cardboard, toys, and lighting fixtures. These measures aim to reduce the undervaluation of imports and support domestic industries.

“Reference prices will be adjusted to prevent tax evasion and protect companies and jobs in Mexico,” stated Economy Minister Marcelo Ebrard during a press briefing at the National Palace. “If someone declares a bicycle at MX$10 when its actual value is MX$100, taxes will now be calculated based on the correct value.”

While reference prices are not used to calculate tariffs directly, they require importers to post a financial guarantee if the declared value is below the benchmark. Since 2019, such controls have applied to footwear, textiles, and apparel; now, they will extend to additional categories in phases through July.

Adjustment Calendar:

• May 12: Furniture and lighting appliances

• May 26: Toys, games, and guitars

• Jun. 16: Sports articles

• Jul. 16: Paper and cardboard

This policy shift coincides with broader trade adjustments following new US tariffs on low-cost shipments from China.

On May 2, the United States ended its de minimis exemption, which allowed duty-free entry of e-commerce packages under US$800 from China and Hong Kong. New tariffs start at 120% or a flat US$100 fee per package, increasing to US$200 by Jun. 1. Additionally, a 10% tariff was imposed on various Chinese goods, including clothing and electronics.

Cindy Allen, CEO, Trade Force Multiplier, highlighted the impact: “The sudden jump from zero to 145% tariffs is unmanageable for many companies. Many small and medium-sized businesses are exiting the market entirely.”

Major e-commerce platforms like Shein and Temu, which represented 30% of de minimis imports into the United States in 2024, are adapting their strategies. Shein is diversifying sourcing and expanding global warehousing, while Temu is increasing reliance on US-based sellers and inventory storage.

Mexico has also implemented new tariffs effective Jan. 1, targeting courier-imported goods from non-trade-agreement countries with a 19% duty. Imports from the United States and Canada face a 17% tariff on shipments valued between US$50 and US$117.

These shifts are altering consumer behavior. In the United States, shoppers are turning to alternative platforms like DHgate and Taobao, which have experienced surges in downloads. In April 2025, DHgate ranked as the second-most downloaded free iPhone app in the United States, while Taobao saw a 514% month-over-month increase, with one-third of its downloads originating from the United States and Mexico.

Physical retailers with domestic supply chains, such as Primark, could benefit as price-sensitive consumers seek alternatives to higher-cost imports. Meanwhile, resale platforms like Poshmark, Mercari, and TheRealReal are gaining popularity as consumers anticipate price hikes of up to 65% for apparel and 87% for leather goods.

Mexico’s exports reached US$55.5 billion in March, contributing to a US$3.44 billion merchandise trade surplus. 

Ebrard stressed the importance of regulatory updates: “Without adequate reference prices, there is abuse, leading to extraordinarily cheap imports.”