Brazil Tyre Industry Seeks Tariff Hike Against Cheap Imports

BRAZIL · ECONOMY

Brazil’s tyre manufacturers are pressing the government for higher import tariffs, arguing that a flood of cheap foreign tyres, mostly from China, is squeezing local production to record lows.

What the industry is asking for

The national tyre-makers’ association met the Development Ministry to request that the import tariff on passenger tyres rise from 25% to 35%. The group says the current rate is not enough to counter a wave of low-priced imports.

The tariff was already lifted from 16% to 25% in 2024. Last year the industry sought the increase to 35%, but the government chose to hold the rate, and the sector has now renewed the request.

The association alleges that some imports enter at prices it calls unfair, and that importers do not always meet Brazil’s environmental rules. The government has not announced a decision.

A shifting market for tyres

The numbers show a sharp reversal. Tyres made in Brazil accounted for about 31% of sales early this year, the industry’s lowest on record, down from 69% in 2019. Imports, largely Chinese, now hold the rest.

Sales of locally made tyres fell in the first months of the year, and the association warns of risks to factories and jobs if the trend continues. The sector runs more than a dozen plants across several states.

Importers and some analysts counter that higher tariffs would mostly fall on drivers, raising prices at the till. The dispute mirrors tensions in other Brazilian industries facing cheaper Asian goods.

Frequently Asked Questions

What does Brazil’s tyre industry want?

It is asking the government to raise the import tariff on passenger tyres from 25% to 35%, arguing that cheap imports, mostly Chinese, are taking over the market through what it calls unfair pricing.

How much of the market is imported?

Imports now hold about 69% of sales, the industry says, up from 31% in 2019. Brazilian-made tyres have fallen to roughly 31%, described as a record low.

What do opponents say?

Importers argue a higher tariff would mainly raise prices for consumers. The government has heard both sides but has not announced a decision.

Connected Coverage

For more on Brazil’s trade, see our coverage of its record trade surplus. For another China-linked story in the region, see our report on Peru’s Chinese-built Chancay port.