🛍️ New Tariffs Shake Apparel Trade
On December 19, 2024, Mexico enacted tariffs of 15% and 35% on certain apparel imports. The change also limits IMMEX program use for duty-free imports of intermediary goods. This policy impacts U.S. e-commerce brands relying on Mexico’s proximity and low tariffs for shipping. At least 30 top Shopify brands use Mexican 3PLs to fulfill orders across the border. Logistics expert Ryan Petersen called it a "nightmare scenario," with 3PLs scrambling to adjust operations.
🌐 Impact on U.S. E-Commerce Logistics
The IMMEX program was a cornerstone of low-cost U.S.-Mexico logistics. It enabled brands to avoid U.S. customs duties by shipping via Mexico. Now, with tariffs so high, Flexport’s Petersen suggests brands might shift to Canadian or U.S. 3PLs. ShipHero CEO Aaron Rubin echoed this, noting the disruption forces e-commerce companies to redesign distribution models, increasing costs and potentially delaying deliveries.
🇲🇽 Mexico Defends Its Apparel Industry
Mexico’s government argues the move is about fairness. Economy Secretary Marcelo Ebrard stated the IMMEX program was being abused by companies importing finished products duty-free and selling locally. He emphasized the need to protect Mexican manufacturers, saying, "Why should a Mexican company be at a disadvantage?" The policy intends to curb trade loopholes and boost local apparel production.
📦 A Shift in Regional Supply Chains
The tariffs could lead to significant regional changes. E-commerce brands may move operations to Canada or return them to the U.S. Experts predict higher shipping costs and slower fulfillment times for customers. This decision comes amid Mexico’s rising importance as a logistics hub for American e-commerce, especially in Tijuana. The question remains: Will this policy drive the intended growth for Mexico’s apparel industry?
Will U.S. e-commerce brands abandon Mexico for Canada?
