A significant rule change in Mexico is set to have a major impact on foreign fashion brands and third-party logistics (3PL) providers that use Mexico as a route for de minimis shipments to the United States. Mexico President Claudia Sheinbaum’s recent efforts to crack down on duty-free apparel imports have left U.S. e-commerce apparel retailers scrambling, as logistics experts predict substantial disruptions.
Last month, Sheinbaum’s actions culminated in a Dec. 19 presidential decree imposing additional tariffs on certain apparel categories, creating uncertainty in the market. These new tariffs, ranging from 15% to 35%, are seen as a serious setback for 3PLs and their ability to efficiently move goods across borders.
The decree also includes measures that exclude several apparel goods from qualifying for Mexico’s IMMEX program, a scheme that traditionally allows duty-free imports of intermediary goods. Under IMMEX, apparel brands could previously import goods into Mexico free of duties, then re-export them to the U.S. under de minimis provisions, thereby avoiding substantial tariffs. With these recent changes, many brands now face significant cost increases, forcing them to reconsider their logistics strategies.
As Flexport CEO Ryan Petersen pointed out, this shift is creating a “nightmare scenario” for 3PLs that handle cross-border shipments. Petersen, sharing his thoughts on social media, explained that many apparel companies are now scrambling to convince the government to reconsider its stance on the new rules. The IMMEX program was crucial for enabling low-cost cross-border operations, and its removal leaves many companies at a disadvantage. Petersen further explained that brands relying on this system to minimize tariffs will now have to search for alternative logistics solutions to mitigate costs.
Echoing Petersen’s sentiments, ShipHero Founder & CEO Aaron Rubin described the rule change as a “major disruption” for large e-commerce companies. In a video posted on X, Rubin stated that companies must quickly adapt and reconfigure their distribution strategies to navigate the new reality. He added that, with the new tariffs, shipping goods through Mexico may no longer be a viable option for many brands. As he pointed out, “Those tariffs are so much that there’s no point in going through Mexico anymore.”
Rubin emphasized that Canadian 3PLs, which still benefit from the ability to ship goods duty-free under the 321 provisions, or U.S.-based 3PLs, are now more attractive alternatives. These options allow for faster shipment without the burdens of high tariffs, making Mexico’s route seem less advantageous by comparison. With the new rules significantly affecting the logistics landscape, brands must pivot to avoid severe delays and increased shipping costs.
Mexican government officials have justified the new rules, citing the need to protect the country’s domestic apparel manufacturing industry. In a Dec. 19 news conference, Marcelo Ebrard, Mexico’s Economy Secretary, explained that the IMMEX program was originally intended for intermediary goods, not finished products. Ebrard added that some companies were exploiting the program by importing finished goods into Mexico and selling them directly, a practice he argued put Mexican manufacturers at a competitive disadvantage.
Ebrard’s statements highlighted the government’s commitment to closing what they perceive as loopholes in the trade system, ensuring that the IMMEX program serves its intended purpose. As a result, foreign fashion brands and 3PLs now face a more complex and costly logistics environment, forcing them to reevaluate their operations and adapt to the shifting trade landscape.
