Tariffs on Asian Products Impact Consumers in First Half of 2023, Experts Say

Web Editor

July 21, 2025

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Introduction to Tariffs and Their Impact on Prices

Since January, Mexico has applied a fixed tariff of 19% on goods imported through digital platforms. This led to an immediate effect on the prices of textile items such as toys, shoes, and clothing within the National Consumer Price Index (INPC), according to economists from Finamex, a brokerage house, and J.P. Morgan.

Understanding the Tariff Situation

Víctor Gómez Ayala, Chief Economist at Finamex, explained that while tariffs on Asian products may contribute to inflationary pressure within non-food items, they are likely not the sole factor. Mexico has imposed tariffs on products from China, Vietnam, and South Korea imported via digital platforms. Popular online retailers like Temu and Shein have been paying this tariff since January.

The Tariff Impact Dissipating

Gabriel Lozano, Chief Economist for Mexico at J.P. Morgan, confirmed that the tariff’s impact has already subsided. He mentioned that various factors, including the avian flu outbreak in Brazil, increased meat prices due to chicken price substitution, climate-related pressures, and the aforementioned tariffs on Asian countries, combined to influence inflation during the past few bi-weeks.

Inflation Trends and Tariff-Affected Categories

According to official statistics, underlying inflation has been on the rise since December, increasing from 3.65% annually to 4.51% in June.

Gómez Ayala specified that tariff-induced price pressures have affected non-food items. The INEGI statistics show that non-food inflation rose from 1.33% annually in December to 2.98% by June, with consistent monthly increases.

  • Specifically, generic items related to clothing, furniture, electronics, health and personal care products, as well as transportation costs have been affected.
  • The economist noted that there has been a noticeable price index recovery in the first three categories—clothing, furniture, and electronics—compared to last year. This recovery might be attributed to the tariffs on imported products.

However, Gómez Ayala cautioned that it’s challenging to determine the exact portion of this recovery linked to the tariffs on these platforms.

Second Half of 2023: No More Tariff-Related Pressure

Lozano reiterated that the tariff’s impact has passed, and it won’t be prominently noticeable in the second half of 2023. Consequently, inflation should converge towards its target, although reaching the precise 3% goal by the third quarter of the following year, as anticipated by Banco de México, will be difficult.

Gómez Ayala explained that the adjustment occurs gradually over bi-weeks, depending on how inventories of importing companies dilute or consumer purchasing patterns through these platforms evolve.

Key Questions and Answers

  • What tariffs were imposed and when? Mexico implemented a 19% fixed tariff on goods imported through digital platforms starting in January.
  • Which product categories were affected? Non-food items, including clothing, furniture, electronics, health and personal care products, and transportation costs, experienced price pressures.
  • How long will the tariff-related inflation pressure persist? The impact has already subsided, and it’s not expected to be prominent in the second half of 2023.
  • What is the target inflation rate? Banco de México aims for an annual inflation rate of 3%.