🚛 New tariffs reshape imports
Mexico has imposed a 19% tariff on imports from countries without free trade agreements, like China. The policy, effective this January, aims to curb low-cost imports from Asian giants such as Shein and Temu. Goods under $50 from the U.S. and Canada, Mexico’s trade partners under USMCA, remain exempt. Imports between $50 and $117 will face a reduced 17% tariff. This regulation favors established players like Amazon, which sources about 30% of its inventory from the U.S., ensuring smoother operations and competitive pricing.
🛒 Amazon and Mercado Libre poised to win
Amazon and Mercado Libre stand to gain as rivals Shein and Temu grapple with increased costs. Amazon’s reliance on U.S. inventory aligns perfectly with Mexico’s preferential treatment under USMCA. Analysts at Itaú BBA highlight that Mercado Libre, sourcing 15% of its products from China, will also benefit from reduced competition despite some exposure to the tariffs. Combined, these e-commerce leaders are set to capture larger shares of Mexico’s growing $50B online retail market.
📈 Broader trade implications
The tariff announcement coincides with rising tensions between Mexico and the U.S., with President-elect Donald Trump threatening tariffs on Mexican goods. Mexico’s “Operation Cleanup” targets smuggled goods, particularly from Asia, bolstering its crackdown on contraband. These measures come amid domestic inflation above 4%, which helped Asian retailers previously thrive through low-cost pricing. As competition shifts, analysts predict an accelerated move toward localized inventory by major players.
💡 The strategic outlook
E-commerce giants are strategizing for long-term gains. Amazon’s robust U.S.-sourced supply chain gives it a pricing edge, while Mercado Libre’s regional footprint strengthens its position. The tariffs may also signal a growing trend of protectionism in Mexico’s trade policies. Itaú BBA’s report emphasizes, “This shift creates a window of opportunity for companies with existing local infrastructure to thrive, especially in high-demand sectors like apparel and consumer electronics.”
Will Mexico’s tariffs reshape the e-commerce landscape?
