Mexico Targets Chinese Imports with Tariffs to Aid Local Market

In a bid to bolster revenue and address a historic budget deficit, Mexican President Claudia Sheinbaum is exploring tariffs on imported goods purchased through Chinese e-commerce platforms such as Temu, Shein, AliExpress, and Alibaba. Officials view this measure as essential for shielding domestic industries from the competitive pressure posed by low-cost imported items, which Mexican authorities claim are often sold without proper import documentation and frequently evade local taxes.

Mexico's budget deficit, projected to reach 5.9% of its GDP this year, is the largest in over three decades. In response, Finance Minister Rogelio Ramírez de la O has been tasked with identifying new revenue streams while preserving social programs as part of a broader initiative to reduce the deficit to 3% by 2025. The proposed tariffs are part of the government's strategy to enhance compliance with import regulations and are likely to affect popular low-value imports, which currently benefit from a USMCA exemption for goods valued under US$50, allowing them to bypass tariffs and the value-added tax (IVA), as previously reported by MBN.

Government sources report that “unfair competition” from Chinese e-commerce imports has resulted in the loss of approximately 20,000 jobs in Mexico’s textile industry, contributing to an 8% contraction in apparel manufacturing, according to El Universal. The National Association of Self-Service and Department Stores (ANTAD) and other trade groups argue that Chinese platforms often sell items that infringe on intellectual property rights and do not meet Mexican standards for materials and consumer safety.

The Mexican Tax Administration Service (SAT)has intensified enforcement efforts in response to these concerns. In August, SAT seized 1.4 million items valued at MX$1.6 billion from Chinese e-commerce platforms, alleging tax fraud and improper use of simplified dispatch procedures. SAT reports that many Chinese e-commerce platforms split large orders into smaller packages, often undervalued and inaccurately labeled to remain below the $50 threshold, thereby avoiding taxes and import duties. 

“Courier companies do not file declarations themselves; they must hire customs brokers,” explained Alberto Ruiz Rioja, a legal expert on customs. Under proposed enforcement measures, customs brokers would be responsible for reporting any suspected tax evasion through this method.

CONAMER, Mexico's National Commission for Regulatory Improvement, has also proposed new regulations requiring imports valued under MX$2,500 to meet Mexican Official Standards (NOMs) for safety and labeling. CONAMER argues that NOM compliance is essential for consumer protection, as current exemptions for small shipments often lack proper labeling in Spanish and do not meet local quality standards.

Despite regulatory challenges, the growth of Chinese e-commerce in Mexico remains significant. Shein’s estimated revenue reached US$2 billion in 2023, while Temu reported US$15.33 billion in 2023 with projections for US$37.13 billion in 2024. Meanwhile, Alibaba recorded consolidated revenue of approximately US$130.35 billion in its 2024 fiscal year, reflecting the continued global demand for affordable consumer goods. If implemented, the new tariffs will be part of the 2025 economic package.