Companies looking to import goods to North America through Mexico are facing rising costs after the Latin American country announced plans to hike tariffs on apparel imports.
On December 19, a presidential decree announced that tariffs for textiles imported into Mexico will increase to 15% and up to 35% for finished apparel products until April 2026.
Meanwhile, further restrictions were put in place for goods being imported under the Manufacturing, Maquiladora, and Export Services Industry (IMMEX) programme that allows foreign manufacturers to import raw materials and components into Mexico, tax and duty free, under the condition that 100% of all finished goods will be exported out of Mexico within a government-mandated time frame.
And Reuters reported late last month that Mexico’s tax authority, SAT, has announced that goods that enter Mexico via courier companies originating from countries that do not have an international treaty with Mexico will be subject to a duty of 19%.
The move is said to have been made to help level the playing field for Mexican manufacturers but will also play a role in helping to reduce “border-skipping”, where companies leverage nearshoring to avoid tariffs on Chinese goods, according to ITS Logistics.
The company said the move will result in companies seeking alternatives to nearshoring into the US via Mexico.
“The increased tariffs and cessation of duty-free imports puts apparel brands in a scramble to find alternative fulfillment solutions and consider shifting strategies from nearshoring via Mexico to reshoring their operations in the US,” said Ryan Martin, president of distribution and fulfillment at ITS Logistics.
“This is costing companies money today, and even if there is a postponement on tariffs, it’s not a winning strategy for companies to just wait and see what happens.”
“We’ve already received an influx of referrals and inquiries from companies looking for someone who can help them pivot and offer them customised distribution solutions with immediate warehouse space in our US facilities,” explained Martin.
“There’s no discounting the impact these tariff increases are having on companies. And while controlling import costs immediately is important, this is an opportunity for company leaders to challenge their current approach, take stock of their entire supply chain, and find ways to optimise.”
The move also comes after incoming US president Donal Trump, who is due to take over at the Whitehouse in mid-December, said he will sign an executive order imposing tariffs of 25% on all goods from Mexico and Canada and an additional 10% on imports from China, above any additional tariffs.
He said the tariffs would help reduce drug smuggling and illegal immigration into the US.
