Mexico’s tax authority (SAT) announced new tariffs in order to improve oversight on goods from Asia, a move that could significantly impact online retailers like Shein and Temu (PDD). Starting January 1, items shipped via couriers from countries without a trade agreement with Mexico, including China, will face a 19% duty. Goods from USMCA member countries, like the U.S. and Canada, will see a 17% duty if valued between $50 and $117.
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The tariffs are part of broader tax reforms that are targeting e-commerce imports. A December 19 decree under President Claudia Sheinbaum also raised import duties to up to 35% on a range of goods, from clothing to home products. Officials argue that the changes aim to curb tax evasion, protect local businesses, and secure jobs in Mexico’s manufacturing and retail sectors.
These measures could disrupt Mexico’s IMMEX program, which allows foreign firms to import goods tax-free for manufacturing or resale to U.S. customers. E-commerce giants like Shein and Temu, which compete with U.S. retailers Walmart (WMT) and Amazon (AMZN), may face higher costs. The decree comes as U.S. President-elect Donald Trump threatens a 25% tariff on Canadian and Mexican imports.
Is PDD a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on PDD stock based on eight Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 33% decline in its share price over the past year, the average PDD price target of $140.47 per share implies 44.4% upside potential.
