Import duty on passenger car tires rises to 30% for 12 months
Camex raised the tariff on passenger car tires from 16% to 30%, responding to a demand from domestic industry and prompting importers to warn of higher costs for consumers and carriers.
The import tariff on passenger car tires will rise from 16% to 30% in Brazil. The decision by the Executive Management Committee of the Chamber of Foreign Trade (Camex), published on November 9, will be valid for 12 months and will take effect on the 10th.
The increase responds to a request from the National Association of Tire Manufacturers (Anip). According to the organization, the share of tires made in Brazil in replacement-market sales fell from 66% in 2019 to 30% in the cumulative figure through September 2026. The association represents manufacturers that maintain 19 factories in the country.
Anip argues that the tariff increase will help preserve local production, investment, and jobs related to the tire supply chain. The organization also says that some imported products reach the Brazilian market at artificially low prices and cites Asian competition as one of the factors putting pressure on companies established in the country.
Importers dispute this assessment. The Brazilian Association of Tire Importers and Distributors (Abidip) says the increase could make products more expensive, reduce the available alternatives, and particularly affect lower-income consumers. The organization also warns of the risk that replacement of worn tires could be postponed and of possible effects on transportation costs.
Abidip further argues that the loss of market share by domestic industry cannot be explained solely by external competition. In the association's view, suspected underinvoicing, tax evasion, and smuggling should be addressed through inspections and specific instruments, without affecting importers that operate lawfully. Importers also point out that manufacturers established in Brazil and automakers rely on foreign products to complement their offerings.
The effect of the new rate on final prices will depend, among other factors, on the exchange rate, inventories, distribution costs, and the commercial decisions of manufacturers and resellers. Because tires are part of the maintenance of vehicles used to transport cargo and passengers, the measure may also affect the cost structure of the logistics chain.
The temporary increase puts two interests in the Brazilian market at odds: protecting production established in the country and maintaining greater variety and competition for importers, distributors, and consumers.