Mexico raises import tax on Shein, Temu orders to 33.5%

Mexico has raised import taxes on small online purchases from companies such as Shein and Temu to 33.5%, up from 19%, according to a government notice published July 28, 2025.

The new tariff applies to imports from countries without a trade agreement with Mexico, including China.

Goods from the US and Canada shipped by courier will continue to face a 17% duty if priced between US$ 50 and US$ 117, remain exempt if priced below US$ 50, and now pay 19% if above US$ 117.

The move follows earlier actions by Mexico to increase tariffs on textiles, and crack down on merchants importing goods without paying taxes or securing permits.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Mexico navigates between competing trade pressures from its largest partners

Mexico’s tax increase on Chinese e-commerce platforms reflects its challenging position between two economic giants with conflicting interests.

The country sends 80% of its exports to the US, making it heavily dependent on maintaining good trade relations with its northern neighbor 1.

At the same time, Mexico faces growing economic pressure from China, with Chinese imports nearly doubling over the last decade and creating a $120 billion trade deficit 2.

The new 33.5% levy specifically targets countries without trade agreements, primarily affecting Chinese goods while maintaining preferential rates for US and Canadian products, demonstrating Mexico’s clear prioritization of North American trade relationships.

2️⃣ E-commerce taxation reveals broader supply chain rebalancing

The focus on platforms like Shein and Temu highlights how digital commerce has become a new battleground in international trade policy.

These platforms have effectively bypassed traditional trade barriers by shipping small packages directly to consumers, creating what US officials view as a “back door” for Chinese goods to enter North America [original article].

Mexico’s decision to raise taxes on small online purchases from 19% to 33.5% mirrors broader efforts to control what trade experts call the “Section 321” loophole, where low-value shipments avoid traditional customs scrutiny 3.

This policy shift reflects how governments are adapting their tax structures to capture revenue from the growing direct-to-consumer international trade that has largely escaped traditional trade controls.