In December 2024, Mexico implemented a 35% tariff on imported textiles and finished goods from countries without free trade agreements, including China. Brands like Shein and Temu, known for their ultra-cheap goods, are directly impacted.

This policy, led by Claudia Sheinbaum and Marcelo Ebrard, aims to address the damage caused by unfair competition. While some might view it as a blow to affordable shopping, this move is vital for preserving Mexico’s economy, culture, and small businesses.

A Textile Industry Under Siege

The textile industry in Mexico employs over 400,000 people and is a cornerstone of the nation’s cultural and economic heritage. From Puebla to Oaxaca, textiles represent both livelihoods and centuries of tradition.

However, the industry is struggling to compete with the flood of low-cost imports. Brands like Shein and Temu take advantage of supply chains that sidestep taxes, labor costs, and environmental standards. This creates a market where local businesses can’t compete .

In regions like Puebla and Tlaxcala, factories are closing, and job losses are mounting. More than 1,500 jobs were lost in 2024 alone . Without intervention, this downward spiral threatens not only the economy but also the artisans who keep Mexico’s traditions alive.

How the Tariff Levels the Playing Field

The new 35% tariff is more than just a tax hike—it’s a lifeline for Mexican manufacturers. Here’s how it works:

• Applies to non-free trade agreement countries: The tariff targets imports from countries like China, ensuring that companies like Shein and Temu can no longer operate with unfair cost advantages.

• Prevents technical smuggling: Companies claiming to import “unfinished” goods for manufacturing but selling them locally now face stricter enforcement .

• Strengthens local industries: By increasing the cost of imports, the policy gives Mexican businesses a fighting chance to compete fairly.

This policy protects jobs, ensures fair competition, and supports an industry that has long been the backbone of Mexico’s economy .

Why This Matters to Expats

If you’re an expat in Mexico, you likely value its culture, traditions, and sense of community. Supporting local industries is a simple yet impactful way to contribute positively to the place you now call home.

When You Shop Local, You:

• Create jobs: Supporting local artisans sustains families and keeps communities thriving.

• Preserve traditions: Every embroidered blouse or handwoven rug tells a story, preserving centuries-old techniques.

• Reduce environmental impact: Locally-made goods have a smaller carbon footprint compared to items shipped globally.

The Downside of Fast Fashion

While Shein and Temu offer tempting prices, they perpetuate harmful practices: exploitative labor, environmental degradation, and the erosion of local economies. By choosing local products, you’re voting for sustainability and fairness.

What Expats Can Do

1. Shop Local

Visit artisan markets, boutiques, and co-ops. Cities like San Miguel de Allende and Oaxaca offer endless opportunities to find unique, handcrafted goods.

2. Educate Yourself

Learn about the impact of your purchases. Research brands to understand their sourcing practices and labor standards.

3. Advocate for Change

Encourage friends and family to support local artisans. Share your experiences and recommendations to spread the word.

4. Embrace Slow Fashion

Prioritize quality over quantity. A handmade textile might cost more upfront but lasts longer and carries a meaningful story.

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The Big Picture

This tariff is more than an economic policy—it’s a call to action. By supporting Mexican artisans, we can preserve traditions, strengthen communities, and create a more equitable economy.

As expats, we have the privilege and responsibility to contribute positively. The next time you’re tempted by a flash sale, think about the story behind your purchase. Choose to invest in Mexico.