On Dec. 19, Mexico President Claudia Sheinbaum announced an increase in tariffs on textiles and apparel imports and ended the practice of “border-skipping,” wherein many U.S. e-commerce sellers leveraged nearshoring to avoid tariffs on Chinese goods. Under the loophole, importers could avoid these tariffs using the Section 321 provision and shipping to Mexican warehouses as fulfillment hubs for low-cost finished products that are then sent directly to U.S. consumers.