Latin American countries are responding to a surge in low-cost Chinese imports facilitated by e-commerce platforms such as Temu, Shein, and AliExpress by implementing new taxes and increasing scrutiny on these shipments. Governments in Mexico, Chile, and Uruguay have introduced or raised import taxes on packages to protect local retailers and manage the influx of inexpensive goods. In Uruguay, the Ministry of Economy and Finance projects revenue exceeding $600 million from three new taxes in 2025, partly driven by the so-called "Temu effect," which has set a new record for import volume. The Uruguayan government has also raised the exemption threshold for online purchases to $800 amid this boom. Meanwhile, Uruguay faces economic challenges including a 43% reduction in industrial investment plans and calls from the Fiscal Council for further spending cuts and fiscal responsibility in the 2026 budget. The government highlighted the highest fiscal constraint in 30 years, while unemployment remained steady at 6.9% in July, approaching a decade low. Political opposition has criticized the government over fiscal transparency and economic management amid these developments.