For years, U.S. companies have been importing goods from China to Mexico, shipping them one order at a time to the U.S., effectively avoiding tariffs under the Section 321 provision. This loophole allowed for duty-free entry of shipments valued at $800 or less, making it an attractive option for e-commerce businesses looking to minimize costs. But on Dec. 19th, Mexican President Claudia Sheinbaum issued a decree that effectively ended the popular “border-skipping” strategy many U.S. e-commerce sellers used to avoid tariffs on Chinese goods. Primarily targeting apparel imports, the decision took effect immediately and will have far-reaching consequences for the industry.

