Because nothing says “free trade” like charging $160 for a package
It seems that our beloved neighbors to the north have decided that binational friendship and trade are measured in dollars… 160 of them, to be exact. The upcoming entry into force of a mandatory tariff for all parcels that have the audacity to cross from Mexico to the United States is, according to experts (who surely have not sent a personal package in their life), a “complication.” What an adorably light term to describe what it really is: a bucket of cold water for companies, e-commerce and any poor mortal who wanted to send a gift to their cousin in Texas.
Courier companies, of course, are already rubbing their hands with corporate enthusiasm. They prepare with a moving zeal to show their clients the extra payment they will have to make. How thoughtful! They charge you, but at least they warn you. The jewel in the crown: a disbursement of 160 dollars in personal shipments, which translates into approximately 3 thousand additional Mexican pesos. The reason? The United States, in a burst of reverse generosity, decided to disappear the personal franchise or minimis, that small umbrella that allowed you to send products for up to $800 without the treasury seeing you with a “what about that?” face.
The magic logistics solution: pay more, but “without complications”
On the one hand, the firm UPS gives us a pearl of corporate wisdom: despite the new charge, they seek to make “international shipping as simple as national shipping.” Of course, because nothing is as simple as paying an extra $160 for something that was previously free. It’s like saying they take the roof off your car but offer you a “simpler” convertible. To make up for this… let’s say, “complication”, they already have a service to calculate all the extra charges. What a relief!
The company explained, with commendable seriousness, that they have a service called UPS Global Checkout. Thanks to this technological marvel, “online shoppers can know the total cost—including duties, fees and taxes—before completing their purchase.” That is, you can see in real time how your budget plummets before you press the “buy” button. UPS even “guarantees the accuracy of this calculation,” being the “only integrated global carrier to do so.” Take that, competition! We don’t just charge you, we charge you with mathematical accuracy!
He added, for everyone’s peace of mind, that they will support their clients to “export correctly and in accordance with the rules to the United States.” Translation: we will help you navigate this new bureaucratic labyrinth that we did not create, but from which, oh coincidence, we obtained a new service for which we probably also charge.
The icing on the cake: a tiered rate that no one asked for
The collection breakdown is a masterpiece of unnecessary complication. The United States will apply a charge of $80 per package for countries with a tariff of less than 16%. For those with more than 25%, the fee will be $200. And for countries with a tariff of between 16% and 25%, like our beloved Mexico, the magic rate is $160. Because why simplify if you can create a price table that requires a master’s degree in foreign trade to understand?
The specialist in foreign trade and former ambassador of Mexico, Roberto Zapata, assured with all possible diplomacy that this revision of the de minimis scheme “reinforces the international trend towards hardening.” In other words, the world is getting stingier, and we are leading the way. He added that “this will imply higher costs, stricter customs requirements and a direct impact” on all those involved. In other words: prepare for disaster.
Jorge Molina, former NAFTA negotiator (now T-MEC), contributed his dose of reality: this will increase production costs. Many companies used this mechanism to ship products quickly and maintain their just-in-time supply chains. Now it will be “just in time… and with an extra bill of $160.”
To top it off, he recalled that the European Union suspended shipments to the United States a few days ago. And Correos de Mexico did the same. The reason? The White House decreed that every package, without exception, has to pay tariff. The Executive Order does not tax the product itself, but rather the way it is shipped. Basically, they charge you for the privilege of using the door. The content doesn’t matter.
In summary, binational trade is preparing for a new era: more expensive, more bureaucratic and, without a doubt, more absurd. Because in the great Mexico-United States relationship, there is always room for a surprise… especially if it comes with an additional price tag.
Is your package ready for its $160 transnational adventure? Share this gem of modern bureaucracy on your social networks and help a friend avoid an unpleasant surprise. And if you’re left wanting more analysis on the brilliant decisions driving global commerce, explore more related content on our site.
