Interpretation of Core Policies

1? ? Mexico 's heavy tax (effective August 15) :

Who was affected: Packages from non-free trade agreement countries such as China, valued at less than 2,500 US dollars.

Tax rate: Skyrocketed from 19% to 33.5%.

Objective: To precisely target low-priced Chinese goods (such as Shein and Temu) and protect local industries in Mexico.

In comparison, low-value packages of the USMCA remain tax-free or subject to low taxes, while the price advantage of Chinese goods has sharply declined.

2? ? us tax exemption ends (effective August 29) :

Change: Cancellation of "Duty-free for small packages under $800" (Section 321).

Impact: All small packages entering the United States are subject to normal customs duties based on the value of the goods.

Objective: Plug the loophole of "small-scale tax exemption", balance competition and increase tax revenue.

Double shock

Soaring costs: Mexico imposes a 33.5% heavy tax and the US and Singapore increase in tariffs, dealing a fatal blow to the low-price and low-profit model.

Competitive imbalance: Sellers of local products from Mexico, the United States and Canada, and those with warehouses in the United States gain a relative advantage.

Customs clearance is becoming stricter: Supervision over small packages is strengthened, and the risks of delivery time and compliance costs are rising.

The Key for Chinese Sellers to Break Through

1? ? supply chain accelerated upgrade:

? Domestic procurement/production in Mexico/the United States: circumvention of Mexico 's high tariffs by taking advantage of the USMCA rules.

? Yangcheng international Advantage Channel: US to Ink Conversion channel (full container entry to us)

? Goods entering the United States in full containers (with a value > $2,500) are not subject to the 33.5% tariff imposed by Mexico on August 15

After customs clearance at the US-Mexico border checkpoint (Tijuana), the goods are transferred to the warehouse in Mexico, achieving "compliant entry into the US + local fulfillment in Mexico".

? Applicable products: High-value and high-volume categories (such as furniture, auto parts, etc.)

? Product upgrade: Focus on high-margin, differentiated and branded goods to digest tariff costs.

2? ? overseas warehouse is the "lifeline" :

? Mexican warehouse: Prepare goods in advance to the Mexican warehouse. After the goods enter the country, they will be "locally dispatched", completely avoiding the 33.5% tariff! Achieve a 1-3 day journey to Mexico, significantly enhancing the experience.

? us warehouse (FBA/ third party) : goods are cleared in bulk (with usually lower tax rates) and enter the us warehouse. Us orders are directly dispatched from the domestic market, avoiding the new $800 tariff and ensuring fast delivery.

? make good use of services: Maximize value-added services such as labeling, label replacement, and return processing in overseas warehouses.

3? ? refined operation:

? compliance and cost control

Declare strictly in accordance with the new regulations and choose a logistics provider with the ability to clear both the United States and Mexico

? Yangcheng international full container customs clearance advantages:

? Bulk declaration for large quantities of goods reduces the cost of customs clearance per item

Avoid the risks of goods being detained or delayed due to strict inspection of small packages

? price and localization strategy

Reconstruct the pricing model based on "tariffs + logistics"

Lay out local after-sales services and promote payment methods

the eye of the storm is also a place of opportunity

The drastic change in tariffs between Mexico and the United States in August marked the end of the era of "cross-border small packages + low-price dumping". The impact is huge, but it is also an opportunity for transformation:

Quick Action: Assess the profits of existing products in Mexico and the United States, and immediately plan the layout of overseas warehouses (especially the warehouse in Mexico is of Paramount importance).

Focus on the core: Localizing the supply chain (procurement/production) and localizing warehousing (Mo Cang/Mei Cang) are the core strategies for survival and development.

Emphasize value: Break away from price wars and win by relying on product strength, brand power and localized services.