Mexico vs China manufacturing for US brands

Mexico and China side by side

Duty: usually the biggest line

What you pay depends on the product's tariff line and its country of origin. Find the line and estimate the total before you compare quotes; our HTS code lookup and import duty calculator, linked under Related below, do both. The economy-wide rates above cover goods entered from July 24, 2026^[5], and they sit on top of the normal rate for the line.

Origin follows where the goods were made, not the port they left from. Assembling Chinese components in Mexico does not by itself make the goods Mexican for duty purposes, so ask your customs broker to confirm the origin before you count a saving.

What a USMCA claim takes

The agreement took effect on July 1, 2020^[6]. The Mexico exception above covers only goods entered duty free under it. That takes two things: the goods must originate under its rules, which depend on the product's tariff line, and the importer must claim USMCA treatment for them. CBP says the USMCA requires a certification of origin^[7], which can be completed by the importer, exporter, or producer^[8]. A valid claim also carries an exemption from the merchandise processing fee^[8].

Two practical points. You must keep the records that support a claim for a minimum of five years from the date of importation of the good^[9]. And a certification of origin is not required for a commercial importation whose originating goods' value does not exceed US $2,500^[10], unless it is one of a series of importations arranged to evade the rules, though CBP notes that a written statement that the goods originate may still be required.

Speed, freight and reorders

Goods from Mexico cross the land border by truck or rail. Goods from China take an ocean voyage to a US port and then an inland leg. Shorter transit can mean less stock in transit and faster reorders, which matters most for seasonal or fast-selling products. Ocean cargo also pays a harbor maintenance fee of 0.125%^[11] of its value, a fee on cargo loaded on or unloaded from a commercial vessel, which goods trucked in from Mexico do not pay. Nearshoring vs offshoring covers the wider trade-off.

Choice of factories

We look in China first for most consumer products, and especially for anything with many parts or materials. We look in Mexico when goods can qualify under the USMCA or a shorter trip to the US matters. In either country, a product of your own design needs a contract manufacturer, a factory that builds to your specification. Check early that factories in Mexico make your product category, and ask whether they import components, because that affects whether your goods can originate under the USMCA. If you are weighing a sourcing agent, or a shelter company that would host your own production under Mexico's IMMEX program, the Mexico sourcing agent comparison sets out how each works and who answers for a USMCA origin claim.

What about Vietnam and India?

Goods of Vietnam carry 12.5%^[12] economy-wide Section 301 duty and goods of India 10%^[13], each over the HTS rate, apart from listed exemptions. Neither pays the China list duties. We look in Vietnam for apparel, activewear and bags, often alongside China, and in India for cotton apparel, jewelry and supplements.

How to decide

1. Send the same request to factories in both countries. Use the RFQ template, so the quotes compare line by line.
2. Confirm the tariff line and the origin. Ask your customs broker to classify the product and confirm where it originates, and ask any Mexican supplier whether the goods will qualify under the USMCA.
3. Convert each quote to landed cost per unit. Add freight, duty and fees on the same terms; the import duty and landed cost guide shows how.
4. Weigh lead time and reorders. A higher unit price can still win if it lets you hold less stock and reorder faster.

Get quotes from both

Request quotes and tell us to include China and Mexico. We introduce you to named manufacturers in each that fit your request, or tell you if none does, and they quote you directly. It is free for brands.

Questions buyers ask

Is it cheaper to manufacture in Mexico or China?

It depends on the product and its tariff line. Goods of Mexico carry a lower economy-wide Section 301 duty, 10%^[2] against 12.5%^[1] for China, none when they enter duty free under the USMCA, and no China list duties. We still look in China first for most consumer products, so compare landed cost per unit for the same specification.

Are goods from Mexico duty free?

Not all of them. Goods that originate under the USMCA can enter duty free, and the economy-wide Section 301 duty does not apply to goods of Mexico entered duty free under the USMCA^[3]. Other goods of Mexico pay the normal rate for their tariff line plus 10%^[2], apart from listed exemptions.

Is Vietnam cheaper than China?

Goods of Vietnam carry 12.5%^[12] economy-wide Section 301 duty and goods of China 12.5%^[1], but the China list duties apply only to goods of China. Compare landed cost from real quotes for the same specification.

Can I get quotes from China and Mexico at the same time?

Yes. Request quotes and pick both countries on the form; we introduce you to named manufacturers in each that fit your request, or tell you if none does.