Retailers across the United States are reassessing supply chains after Mexico announced significant tariff hikes on textiles and apparel. On December 19, the Mexican government revealed protective measures imposing a 15 per cent tariff on textiles and up to 35 per cent on finished apparel imports.
These tariffs aim to shield Mexico’s textile industry from low-cost Chinese goods, a critical move to support nearly 500,000 workers, according to Economy Secretary Marcelo Ebrard.
The new tariffs also challenge US e-commerce brands that have relied on Section 321’s de minimis provision, which exempts customs duties on shipments valued under $800. Many companies had been routing goods from China through Mexico before shipping them to the US, a strategy now in jeopardy.
Ryan Martin, president of ITS Logistics, highlighted a significant increase in inquiries from businesses as they work to navigate the new tariffs. He noted that many companies are in the early stages of assessing their options and gathering information to determine the best path forward amidst the uncertainty.
Adding to the uncertainty, President-elect Donald Trump announced plans to impose a 25 per cent tariff on imports from Mexico and Canada and an additional 10 per cent on Chinese goods. These measures, aimed at curbing illegal immigration and drug trafficking, could further disrupt trade flows.
