Mexico Raises Import Tax to 33.5% on Low-Value Online Purchases

Mexico is increasing import taxes on low-value online purchases from 19% to 33.5%, effective August 15, 2025, targeting shipments primarily from Chinese e-commerce platforms like Shein and Temu. This tax hike applies to packages valued under $2,500 sent via courier services from countries without free trade agreements with Mexico, aiming to combat tax evasion, contraband, and unfair competition against domestic industries. The move is expected to impact cross-border commerce, with resellers and small entrepreneurs particularly affected, although platforms like Shein and Temu are integrating more Mexican vendors to mitigate costs. The increase coincides with heightened U.S. trade pressures, as President Trump’s administration prepares to impose new tariffs on Mexican goods, suggesting a strategic alignment by Mexico with Washington's concerns over Chinese e-commerce. Meanwhile, Mexico's wholesale trade revenues continue to decline, and other retail developments include record sales at Grupo Bimbo and Amazon Mexico's most successful Prime Day. Additionally, the EU is scrutinizing Temu for alleged violations of the Digital Services Act related to the sale of illegal products.