Amazon and Mercado Libre expected to benefit from Mexico tariffs

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.

This month, the government levied a 19% tax on courier-based imports from nations with which it does not have a free trade agreement, including China.

Imports from the United States and Canada, which are part of a regional trade deal with Mexico, will be excluded for purchases under $50.

Items priced between $50 and $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 measures come amid growing trade tensions with U.S. President-elect Donald Trump, who campaigned on a promise to impose severe tariffs, including on Mexico and Canada, and doubled down on the threat on Tuesday by promising “very serious” tariffs on the two countries.