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Mercado Livre has consolidated its status as the largest marketplace in Latin America and increased pressure on Amazon, Shein and Temu. The growth of local logistics and new taxes on cheap imports are changing the entire structure of the region's e-commerce.

Brazil has imposed a 60% tax on all imported goods worth less than $50 coming through cross-border online trading channels. The measure actually doubled the purchase price for Brazilians on platforms such as Shein, Temu, Shopee and AliExpress. At the same time, the country is carrying out a large-scale tax reform, which is changing the entire taxation system for international sellers.

After the US lifted the de minimis exemption and imposed duties of up to 125% on Chinese exports, PDD Holdings, the parent company of Pinduoduo and Temu, announced the allocation of 100 billion yuan ($13.7 billion) to support sellers. The money will be used to help small producers shift from the American market to the domestic Chinese market and alternative destinations, including Russia and BRICS.