The trend for US importers to route via Mexico is nothing new.
Since the U.S.–China trade war began in 2017, imports from China to the U.S. have decreased, while imports from Mexico have grown. However, during this time, Chinese trade and investment in Mexico increased significantly.
Many Chinese goods were sent to Mexico first because of Mexico’s lower tariffs compared to U.S. duties. Programs like the USMCA, which allows low-barrier trade between Mexico and the U.S., and IMMEX, which allows certain goods headed for the U.S. to enter Mexico duty-free, made this route attractive for importers.
China-Mexico-USA Import Changes
Recently, effective Dec 2024, Mexico’s President Sheinbaum signed a new law that imposes tariffs of up to 35% on clothing imports from countries like China. This move subsequently restricts the use of IMMEX for certain textiles and apparel. These changes create challenges for apparel importers, especially e-commerce sellers, who used these programs to avoid higher U.S. tariffs.
IMMEX Program – For Apparel Importers
The IMMEX program (short for Industria Manufacturera, Maquiladora y de Servicios de Exportación) is a well-known Mexican government program aimed at promoting export manufacturing by offering tax and duty benefits to companies that import raw materials or goods to process or assemble them in Mexico and then export the finished products.
E-commerce apparel importers who were using the China-Mexico-USA route to avoid high tariffs will have to rethink their supply chain and most likely choose an alternative route.
Starting in January, the Mexican government will also enforce stricter reporting rules for e-commerce imports. Read more here about other upcoming tariffs for 2025.
