Mexico sides with Trump: Increases taxes on online purchases by Shein and Temu

 

Mexico sides with Trump: Increases taxes on online purchases by Shein and Temu

The new 33.5 percent tax, up from the previous 19 percent, will apply to goods imported from China.

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Mexico has been in intense negotiations with the United States to avoid Trump’s 30 percent tariffs. 

Mexico is raising taxes on low-value online purchases made on platforms such as Chinese retailers Shein Group Ltd. and Temu as negotiations intensify to avoid U.S. tariffs .

What are the new taxes for online purchases in 2025?

The new 33.5 percent tax , up from 19 percent, will apply to goods imported from China and other countries with which Mexico does not have a trade agreement .

Products from the United States and Canada shipped by courier services will continue to pay a 17 percent tax if their value is between $50 and $117

Those with a value below that range will remain exempt, while those above it will pay 19 percent tax.

Why did Mexico increase taxes on purchases made through Shein and Temu?

The decision, published in the Official Gazette of the Federation on Monday night, is an update to the international trade rules that Mexico implemented earlier this year.These measures have been seen as a response to US accusations that China is using Mexico as a backdoor to ship cheap goods to its northern neighbor.

Shein and Temu did not immediately respond to requests for comment.
Last year, Mexico had already increased tariffs on textile products from countries like China and stepped up operations against merchants who imported Asian products without paying taxes or obtaining the required permits.

The new tax could be part of a strategy to curb unfair competition or increase revenue , though it will also affect low-income consumers, said Juan Carlos Baker, former undersecretary of foreign trade in Mexico and one of the negotiators of the USMCA (a treaty between the United States, Mexico, and Canada) .”This tax increase will ultimately be paid for by consumers, as the people who use these types of platforms to purchase products are often the most disadvantaged,” Baker noted.

“Goods are becoming more expensive for those who need them most.”Negotiations to avoid Trump’s tariffs on MexicoMexico has been in intense negotiations with the United States to avoid the 30 percent tariffs that President Donald Trump has threatened to impose starting August 1.

The measure announced Monday could be part of that negotiation strategy, commented Diego Marroquín, a researcher at the Center for Strategic and International Studies (CSIS).

“Sheinbaum’s administration also seeks to increase tax revenue, stem Chinese overcapacity, and protect domestic industry,” he explained.