Amazon and Mercado Libre expected to benefit from Mexico tariffs

MEXICO - E-commerce giant Amazon and Mercado Libre could benefit from new tariffs on low-cost imports into Mexico versus Asian retailers such as Shein and Temu, according to analysts at Itaú BBA.

The government this month imposed a 19% tax on imports via courier services from countries with which it does not have a free trade agreement, which includes China.

Imports from the United States and Canada, which are part of a regional trade agreement with Mexico, will be exempt on purchases with a value of less than US$50.

Items valued between US$50 and US$117 from the United States and Canada will be subject to a 17% tariff.

“The policy appears aimed mainly at Asian players such as Shein and Temu, which previously benefited from exemptions on imports below $50,” Itaú BBA analysts wrote in a note sent to the media on Tuesday.

The moves come amid growing trade tensions with U.S. President-elect Donald Trump, who campaigned on a promise to impose harsh tariffs, including on Mexico and Canada, and doubled down on the threat Tuesday by promising “very serious” tariffs on the two countries.

Trump has previously accused Mexico of being a backdoor for Chinese goods , something Mexico has denied.

However, Mexican authorities recently launched “Operation Cleanup” to confiscate smuggled goods shipped into the country from Asia.