Mexico has announced significant tariffs on textile imports, marking new government efforts to protect its domestic textile industry. The government, led by President Claudia Sheinbaum, introduced tariffs of up to 35% on confectioned goods and 15% on textiles, beginning on December 20, 2023.
The announcement, made during a press conference with Secretary of Economy Marcelo Ebrard, aims to shield local manufacturers from unfair competition, particularly from platforms like Shein and Temu, which have gained popularity for their low-cost apparel. According to Ebrard, the tariffs will affect specific tariff fractions rather than entire countries, allowing for flexibility as products come from various sources.
“Los aranceles se aplican a fracciones arancelarias específicas, no a países en particularmente,” explained Ebrard, underscoring the technical nature of the tariffs and their anticipated impact on pricing.
Rafael Zaga Saba, president of the National Chamber of the Textile Industry, noted during interviews following the announcement, “Podemos competir contra países asiáticos pero no contra una ilegalidad.” His assertion reflects frustrations within the industry, where illegal imports have undermined domestic sales and manufacturing.
Indeed, illegal imports pose a substantial challenge, with Zaga Saba indicating, “Tres de cada cinco prendas que se venden en México vienen de una manera ilegal.” This data reveals the extent of the problem facing Mexican producers as they compete against cheaper, unregulated imports.
The newly enforced tariffs encompass 138 specific categories of goods, impacting various textile items from countries without trade agreements with Mexico, primarily China, Turkey, and Bangladesh. The textile industry, which employs around 400,000 individuals, has faced difficulties, with Zaga Saba asserting the newly enacted measures are necessary for survival.
Gabriela Siller, director of economic analysis at Banco Base, commented on the broader economic ramifications of these tariffs for consumers. She noted, “Va a incrementar los costos de la ropa, particularmente lo que viene desde China,” emphasizing the penalties associated with increased import costs.
Despite the potential rise in consumer prices, both Shein and Temu may not experience immediate price changes due to their direct-to-consumer shipping models. Ebrard clarified, “Los aranceles pueden aplicarse a productos de diferentes países,” allowing for some degree of removal of the tariff burden depending on the specific products sold.
While some experts express optimism, citing the potential for higher demand for locally produced textiles, there are concerns about inflation and its effect on consumers. “If suben los precios de la ropa importada, habrá una mayor demanda de ropa nacional,” warned Siller, signaling the ripple effects these tariffs may generate across the market.
The government’s move has raised questions about the future operational strategies of Shein and Temu, especially with indications from Zaga Saba about potential new regulations by 2025 aimed directly at these companies. He stated, “A partir del 1 de enero vamos a ver estos cambios,” hinting at more stringent compliance requirements.
President Sheinbaum clarified the intent behind these tariff changes during her morning conference. “Algunos medios hoy lo toman como si fuera un mensaje a China. No. Tiene que ver con la protección de la industria nacional,” she reaffirmed, framing the tariffs as part of broader economic protectionism.
With the implementation of increased tariffs and the scrutiny on online retailers, the future remains uncertain for Mexican consumers who rely on platforms like Shein and Temu for affordable clothing. The industry will closely monitor these changes to understand their lasting impact on prices, availability, and consumer behavior.
Overall, the government’s protective stance has initiated key discussions around domestic production, international trade ethics, and market competition, setting the stage for significant developments within Mexico's textile sector.
