December 27, 2024

Why Higher Tariffs on Shein and Temu Are Good for Mexico—and Why Expats Should Care

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.

Five Mexican Brands to Love

A vibrant silk scarf with intricate Mexican designs featuring floral and geometric patterns held up by a person wearing a beige coat. The colorful scarf contrasts against a clear blue sky in the background.

Pineda Covalin

What They Offer: Luxurious silk scarves, accessories, and clothing featuring Mexican motifs.

Why They’re Great: They bring Mexico’s culture to the global luxury stage.

Website: pinedacovalin.com

Carla Fernández

What They Offer: Ethical, sustainable fashion made in collaboration with indigenous artisans.

Why They’re Great: They merge ancient techniques with contemporary design.

Website: carlafernandez.com

Interior of a boutique featuring traditional and modern Mexican clothing. Racks with ponchos, jackets, and dresses in earthy and bold colors are displayed, along with a table showcasing handmade accessories and decorative items. The store design incorporates cultural motifs.
Man and woman wearing traditional Mexican embroidered clothing. The man is dressed in a white guayabera-style shirt with colorful floral embroidery, while the woman wears a white dress adorned with vibrant floral patterns, complemented by statement earrings and a purple flower in her hair. They stand in a rustic stone alleyway with soft natural lighting.

Solei Store

What They Offer: Authentic Mexican handcrafted fashion and accessories, including embroidered dresses, blouses, ponchos, and jewelry.

Why They’re Great: Solei Store celebrates Mexican culture by offering handmade garments that blend traditional craftsmanship with contemporary fashion, supporting local artisans and preserving cultural heritage.

Website: https://soleistore.com/

Bobois

What They Offer: Casual Mexican clothing for men and women, including shirts, blouses, dresses, pants, and accessories.

Why They’re Great: Bobois provides stylish and comfortable apparel that reflects Mexican fashion trends, offering free shipping on orders over $899 MXN and a 30-day money-back guarantee.

Website: https://bobois.com.mx/

Stylish man and woman posing in front of a large stone fountain in a lush park. The woman wears a chic knit top, a high-waisted green skirt, and wedge sandals, accessorized with sunglasses and a statement belt. The man is dressed in a light green shirt, beige pants, and white sneakers, holding a pair of sunglasses, creating a relaxed yet fashionable look.
Young man sitting on a bench in a modern urban park, wearing a casual outfit featuring a white graphic t-shirt, ripped light blue jeans, and white sneakers. He carries a stylish gray leather backpack with sleek straps, exuding a contemporary and relaxed vibe.

Badtribu

What They Offer: Men’s clothing, including t-shirts, shirts, jackets, jeans, cargo pants, and accessories.

Why They’re Great: Born in Mexico, Badtribu focuses on quality denim and versatile designs, offering comfortable and stylish outfits for men, with a commitment to fair pricing.

Website: https://www.badtribu.com/

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.

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