How Mexican importers are responding to tariffs adjustments

Mexico has significantly increased tariffs on imports from non-free trade agreement countries, such as China. For instance, the tariff on packages valued under $2,500 has risen from 19% to 33.5%, and the tax exemption for goods under $50 has been abolished. Besides tariffs, Mexico also levies a 16% value-added tax (VAT), and if the Mexican RFC tax number is not registered, a withholding tax of up to 20% may be imposed, with the total tax burden potentially reaching as high as 53.5%.

Mexico has frequently adjusted its import tariff policies, which poses considerable challenges for Mexican buyers importing goods from China.

Recalculate the total landed cost of imported goods (including commodity prices, tariffs, value-added tax, logistics costs, etc.). For some low-value goods with severely compressed profit margins, consider whether to reduce the purchase volume or look for substitutes.

The tariff increase mainly affects low-priced goods. If possible, consider purchasing higher-value goods with greater profit margins to spread the proportion of tariff costs.

Although the tariffs on low-value packages have increased significantly, it is possible to consider consolidating purchase orders to increase the value of each batch of goods. This may be applicable for cost optimization under certain logistics methods.

The Mexican customs authorities have become more stringent in their requirements for customs clearance documents. It is essential to provide complete recipient information (including name, address, phone number, and tax ID) and detailed descriptions of the goods to avoid delays, additional costs, or even the return of goods due to document issues during customs clearance.

If the purchase volume is large and the business model allows, you can discuss with suppliers or logistics service providers about using local overseas warehouses in Mexico. Goods enter Mexico in bulk (applying the corresponding import tax rate), and subsequent sales are shipped from local warehouses. This not only avoids the high tariffs on individual packages but also improves delivery speed and customer experience.

Work with freight forwarders who are familiar with the Mexican customs clearance process and have good customs clearance capabilities. They can provide professional guidance and help handle complex tax and customs clearance issues.-

Although the Mexican government aims to plug loopholes, it is still possible to assess whether it is feasible to transit or undergo simple processing through the United States or Canada in compliance with regulations to take advantage of preferential tariff treatments. However, this requires a careful assessment of compliance risks and related costs.

Seek alternative suppliers in Mexico or countries with which it has free trade agreements (such as the United States and Canada) to reduce reliance on imports from China and thus avoid high tariffs.

This is a very important and effective step. After a business registers for an RFC tax number, it can avoid having the e-commerce platform withhold a high income tax (20%) on its behalf, thereby significantly reducing the overall tax burden. After registration, business sellers may only need to declare and pay a 16% value-added tax, and the income tax rate can be 0%; the income tax rate for individual sellers will also be significantly reduced.

Actively study the latest tax policies in Mexico to ensure that all import activities are conducted in compliance, avoiding fines and losses resulting from non-compliance.

Communicate candidly with Chinese suppliers about the changes in Mexican tariff policies, jointly discuss ways to optimize product costs, or explore new trade terms and cooperation models (such as DDP terms, where the seller bears customs duties and value-added tax) to maintain the sustainability of the cooperation.

 Some large Chinese suppliers or platforms (such as SHEIN and Temu) are also actively responding and may offer some local support. Find out if they can provide options for local shipping from Mexico or if there are other cooperation plans to mitigate the impact of tariffs.

Focus on the compliance of customs clearance documents and closely cooperate with logistics partners to avoid delays; calculate costs and adjust the procurement categories and strategies if necessary; complete the registration of the RFC tax number as soon as possible to reduce the income tax burden.

It is necessary to comprehensively consider the diversification of the supply chain, evaluate local models such as overseas warehouses, and establish closer cooperative relationships with suppliers to jointly address challenges.

Proactively adapting to changes and ensuring compliance in operations are the keys to maintaining competitiveness in a changing environment. Sunny Worldwide Logistics has been deeply involved in the industry for over 20 years, providing one-stop logistics solutions for cross-border e-commerce from China to Mexico,  Sunny is familiar with the customs clearance process in Mexico. If you need to ship goods, you can contact our sales team at any time to obtain more relevant logistics information.