Mexico: Increase in import tariffs on textiles
In an effort to protect its textile industry, Mexico has recently imposed tariffs of up to 35% on ready-to-wear imports. The measure, already in force since 20 December 2024, is applicable at a minimum until April 2026.
Mexico announced an increase in tariffs on textile and clothing imports. On 19 December, the Mexican President, Claudia Sheinbaum Pardo, signed aDecreepublished in the Diario Oficial de la Federación (Federal Official Gazette), which includes various measures affecting the textile sector. Customs duties to import manyfinished textile products will increase from 20-25 % to 35 %(138 codes of the harmonized tariff nomenclature are concerned) and those on thetextile inputs, raw materials and components from 10% to 15%(17 codes of the harmonised tariff nomenclature concerned). A measure echoing the rise in customs duties adopted by Mexico in April 2024 on many imported products (cf.Mexico: Tariff increase for 544 customs codes). However, these increases are not expected to impact products originating in countries with which Mexico has signed a free trade agreement.
In addition, this recent decree also provideschanges to the IMMEX programme(Industria Manufacturera, Maquiladora y de Servicios de Exportación), which allows temporary imports duty-free prior to re-export, extending the list of textile products prohibited from temporary importation and imposing specific requirements on new products.
Thanks to these measures with immediate effect (entry into force of the decree from the day after its signature, from 20 December and until 23 April 2026, with the possibility of extension), Mexico intends to protect its textile industry, heavily affected by the flooding of its market by low-priced clothing from countries with which the country has not signed a free trade agreement. The figures for temporary imports and re-exports also deduced that certain products, initially destined to be re-exported, were ultimately sold in the Mexican market. In one year, the GDP of the Mexican textile industry fell by 4.8%, equivalent to P229 million per year (€57 million), and 79 000 jobs out of the 400,000 in the textile sector were abolished in 2024. Fearing the loss of 150,000 additional jobs due to Damocles' sword suspended above his head by Donald Trump, who threatens to impose new customs duties in the coming months, Mexico quickly adopted this regulation to combat competition deemed unfair. For some brands, the challenges will be significant and immediate, with the importation of finished products likely to be more expensive, and companies dependent on IMMEX benefits will have to quickly reorganize their supply chain to comply with the new restrictions and limit breakage.