MEXICO CITY, Dec 31 - Mexico has announced significant new tariffs aimed at enhancing the surveillance of goods from Asia, particularly focusing on popular online retailers such as Shein and Temu. The tax authority, SAT, stated that any goods entering Mexico via courier from countries without an international treaty will now incur a 19% duty. This directly affects Shein and Temu, as both companies are based in China, which lacks such a treaty with Mexico.

For goods from countries part of the United States-Mexico-Canada Agreement (USMCA), including Canada and the U.S., a 17% duty applies if the value exceeds $50 yet remains below $117. Additionally, products from treaty countries will incur a 19% duty if their value exceeds $1, according to SAT. The Mexican tax authority aims to strengthen the "fight against abusive practices" in international trade.

Previously, countries were not required to pay duties on certain goods values, which made this a significant shift. The new tariffs take effect on January 1 and align with a recent decree by President Claudia Sheinbaum, raising import duties on various clothing items and home goods up to 35% as part of a broader effort to prevent tax evasion and ensure fair competition for local businesses.

This move has raised concerns among industry experts, who suggest it may severely disrupt Mexico's IMMEX program—a framework that permits foreign companies to import goods into Mexico duty-free for manufacturing, assembly, or packaging intended for the U.S. market. Furthermore, both Shein and Temu will be significantly affected, as they face heightened competition from established U.S. retailers like Walmart and Amazon.

The implementation of these tariffs is timely, coinciding with the upcoming inauguration of U.S. President-elect Donald Trump, who has previously indicated a desire to impose a 25% tariff on imports from both Mexico and Canada. The ramifications of these tariffs could reshape the landscape of e-commerce within the region, with many anticipating a substantial impact on consumer prices and market dynamics.

For more details, visit Reuters and South China Morning Post.