The recent implementation of new tariffs on low-cost imports into Mexico could significantly benefit e-commerce giants Amazon.com and MercadoLibre, potentially hindering Asian competitors like Shein and Temu. This analysis delves into the implications of these new regulations and their potential impact on the competitive landscape of the Mexican e-commerce market.
Mexico introduced a 19% tax on imports via courier services from countries lacking a free-trade agreement with Mexico, notably including China. Simultaneously, imports from the U.S. and Canada, beneficiaries of a regional trade pact with Mexico, enjoy exemptions on purchases under $50. Items valued between $50 and $117 originating from these North American nations face a more modest 17% duty.
Analysts at Itau BBA posit that these measures primarily target Asian players like Shein and Temu, which previously exploited exemptions on sub-$50 imports. This shift in trade policy arrives amidst escalating trade tensions, echoing previous concerns about Mexico potentially serving as a conduit for Chinese goods. Mexican officials have actively sought to counter this perception through initiatives like “Operation Clean-Up,” aimed at confiscating contraband originating from Asia.
Itau BBA suggests that Amazon stands to gain the most from these tariff adjustments, followed by MercadoLibre. Approximately 30% of Amazon’s Mexican sales involve imported goods, predominantly sourced from the U.S. In contrast, MercadoLibre imports around 15% of its goods sold in Mexico, primarily from China.
While the new tariffs will undoubtedly impact MercadoLibre’s Chinese imports, analysts anticipate a net positive effect due to diminished competition. This development builds upon Mexico’s recent imposition of a 15% tariff on raw textile imports and a 35% tariff on finished fabric-based products. These measures address concerns about companies leveraging loopholes to import finished goods, mainly from China, disrupting fair competition within the local market.
Both MercadoLibre and Amazon are expected to continue solidifying their presence in Mexico’s rapidly expanding e-commerce sector. The new tariffs, while potentially disruptive in the short term, could ultimately reshape the competitive dynamics, favoring established players with strong regional supply chains. The long-term implications of these policy changes will continue to be a focal point for market observers. These measures underscore the evolving complexities of global trade and the significant role of government regulations in shaping the future of e-commerce.
