Amazon Set To Benefit From Mexico's Import Tariffs Affecting Temu, Shein — Analysts See Window Of Opportunity For Established Players

E-commerce giants Amazon.com Inc. AMZN and MercadoLibre Inc. MELI are positioned to strengthen their market dominance in Mexico following the country’s implementation of new import tariffs targeting Asian competitors, according to Itau BBA analysts.

What Happened: Mexico imposed a 19% tax on courier service imports from nations without free-trade agreements, primarily affecting Chinese fast-fashion retailers Shein and PDD Holdings Inc.‘s PDD Temu. The move comes as Mexico intensifies scrutiny of Chinese imports amid broader trade tensions with Asia.

The policy maintains preferential treatment for U.S. and Canadian imports under the USMCA trade agreement, with exemptions for purchases under $50 and a reduced 17% duty on items valued between $50 and $117.

This structure particularly benefits Amazon, which sources approximately 30% of its Mexican inventory from the U.S., Itau BBA said, according to Reuters.

While MercadoLibre imports about 15% of its Mexican merchandise from China, analysts expect the company to see net positive effects from reduced competition. The development follows Mexico’s recent implementation of additional protective measures, including a 35% tariff on finished fabric products and a 15% duty on raw textiles.

See Also: Trump Floats Canada As 51st US State, Says He’s Ready To Use ‘Economic Force’ To Achieve It

Why It Matters: The timing is significant as President-elect Donald Trump has promised “very serious” tariffs on Mexican imports, citing concerns about the country serving as a conduit for Chinese goods. Mexican authorities have responded with “Operation Clean-Up,” targeting contraband Asian imports.

“The policy appears designed to close loopholes that previously allowed companies, primarily from China, to redirect goods to the local market through preferential import channels,” Itau BBA analysts wrote, highlighting the potential for established e-commerce players to capture market share.

The measures come as Mexico grapples with inflation above 4%, a factor that had previously helped Asian retailers gain market share through competitive pricing strategies.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.