Recently, the Brazilian Tire Industry Association proposed an initiative urging the government to impose higher taxes on tires imported from Asia.
The association stated that low-cost Asian tires are invading the Brazilian market and severely affecting the operation of the domestic tire industry. In its proposal, the association suggested that the import tax on tires should be raised from 16% to 35%.
The Brazilian Ministry of Development, Industry, Trade, and Services is currently analyzing this possibility. Data shows that from 2017 to 2023, tire imports into Brazil increased by 117%. In the first five months of this year, tire imports rose by 229% compared to the same period in 2017.
China is the largest source of tire imports for Brazil, accounting for approximately 38% of the market share.
The Brazilian Tire Industry Association believes the government should follow the example of the steel and automotive sectors and impose similar taxes on tires. Both of these industries saw significant improvements in their investment environment after anti-dumping investigations were conducted.
However, this proposal has faced opposition from the Brazilian Tire Importers Association and the Distributors Association. The two associations have pointed out that imposing additional tariffs could lead to inflation and cause tire prices to rise by 25%.
