Mexico's E-commerce Market to Expand Despite Tariffs

Mexico’s e-commerce sector continues to grow rapidly, securing its position as the second-largest market for online sales in Latin America, after Brazil. In 2023, the market expanded by 24.6%, surpassing US$44 billion in sales, according to the Mexican Association of Online Sales (AMVO). Despite challenges such as limited internet access in rural areas, the lack of bank accounts for nearly half of the adult population, and logistical issues, Mexico remains among the top 15 global markets for online retail.

A major factor driving Mexico's e-commerce boom is the rise of mobile internet. Over 70% of online transactions are made via mobile devices, with consumers increasingly purchasing everyday items like groceries, electronics, and clothing from their smartphones, as reported by Forbes. 

However, recent regulatory changes in Mexico present new obstacles for e-commerce businesses. On Jan. 1, 2025, the country imposed a 19% tariff on products imported from non-trade agreement countries, including China. This move impacts popular platforms like Shein and Temu, which have gained traction among budget-conscious shoppers but have faced criticism for circumventing regulations and undermining local businesses.

The new tariffs aim to protect domestic industries, particularly textiles, which now face an additional 35% tariff. As a result, products from platforms like Shein and Temu will see price hikes. For instance, an item that previously cost MX$100 will now cost MX$178.64, factoring in both the new import duties and the 16% VAT.

These tariff changes have wide-reaching consequences for both consumers and businesses. President Claudia Sheinbaum explained that the tariffs target products being imported in bulk and resold in Mexico without proper tax payment. “These platforms are being used to import large quantities of products that are then resold in Mexico without paying the corresponding taxes,” she stated.

Despite an expected modest economic growth of 1.2% in Mexico in 2025, online sales are forecasted to continue their double-digit growth through 2030.