Mexico’s New Ban on US-Bound Apparel Imports a ‘Nightmare Scenario’ for Brands, 3PLs
Logistics provider XB Fulfillment reportedly told customers it will no longer be able to import duty-free apparel into its Mexican warehouses.
Yay protectionism!
Mexico’s recent decision to immediately restrict textile imports through its IMMEX import duty-deferral program could put U.S. apparel brands bringing goods through the country in a major scramble to kick off 2025—and it already appears to have third-party logistics (3PL) providers working overtime.
On Dec. 19, Mexico President Claudia Sheinbaum issued a presidential decree banning finished apparel goods from being imported under the IMMEX program, which allows goods to move temporarily into the country duty-free if they’re intended for re-export to the U.S. That program is designed to enable foreign companies to operate and manufacture in Mexico with low-tax structures and reduced labor costs.
The immediate restrictions under the Manufacturing, Maquiladora and Export Services Industry (IMMEX) program effectively nullify many of the advantages of lower cost importing into the U.S. from a 3PL with Mexican warehouses. Many U.S. e-commerce brands currently take advantage of the Section 321 de minimis provision to avoid customs duties on shipments valued at $800 or less by importing goods from China into Mexico-based warehouses, before shipping them via truck to the U.S.
XB Fulfillment, an e-commerce 3PL platform that provides U.S.-based e-commerce and omnichannel brands with fulfillment and warehousing services, reportedly notified customers that it will no longer be able to import apparel into Mexico for them, declaring force majeure on their contracts.
“The vast majority of their customers are apparel brands,” said Ryan Petersen, CEO and founder of Flexport, in a post on X. “This has created a nightmare scenario for XB, its competitors, and the many great brands they serve. They’re scrambling to get the government to not destroy their business, and their customers are searching for solutions.”
Sheinbaum’s decree was accompanied by a new swell of temporary tariffs on textile imports into Mexico, which will increase from a current 10 percent to 15 percent on textiles like denim and polyester staple fibers. Additionally, duties on finished products such as knitwear, jackets and lingerie will jump from their current range between 20 percent and 25 percent up to 35 percent.
The move from Mexico’s government appears to be a protectionist measure for the country’s textile industry, with the country’s Economy Minister Marcelo Ebrard saying that the new measures aim to protect approximately 400,000 jobs in the textile industry, which experienced a 4.8 percent GDP contraction in 2024.
“That’s why we are closing the door. These are measures to protect one of the most important industries for employment in Mexico. If we don’t take steps to prevent abuse or the low prices associated with ‘dumping,’ the Mexican textile industry would be at a disadvantage,” Ebrard said in a Dec. 19 press conference. “The goal is to foster the development of the Mexican textile industry, promote employment, and ensure fair market conditions.”
The restrictions also come amid U.S. President-elect Donald Trump’s threats of tariffs of up to 25 percent on Mexican goods ahead of his January inauguration, amid his criticisms of the country’s handling of immigration into the U.S., and the flow of fentanyl over the U.S.-Mexico border.
