Brazil Raises Passenger Tyre Import Duty to 30% Until 2027

Standfirst: Brazil has introduced a 30% import tariff on passenger car tyres for 12 months, following pressure from domestic manufacturers. The decision has divided the industry, with producers welcoming additional protection and importers warning of higher prices and reduced competition.

Brazil has introduced a temporary 30% import duty on new passenger car tyres, effective from 10 November 2026 until 9 November 2027, following requests from domestic tyre manufacturers for stronger protection against imported products.

The measure, established under Gecex Resolution No. 978 of 6 November 2026, applies to tyres classified under NCM 4011.10.00, covering new pneumatic tyres for passenger cars, including estate cars and racing cars.

The decision has been welcomed by Brazil's tyre manufacturing association, ANIP, but opposed by importers and distributors concerned about its potential impact on competition, availability and consumer prices.

Brazil Increases Tariff Following Industry Pressure

The new 30% rate replaces the ordinary 16% import tariff applicable to the specified passenger tyre category.

Brazil had previously applied a temporary 25% duty, introduced in October 2024 and subsequently extended until 16 October 2026. That measure expired before the latest increase took effect.

The Associação Nacional da Indústria de Pneumáticos (ANIP) had requested a 35% duty for a further 12 months, or alternatively the retention of the previous 25% rate.

Brazil's Executive Management Committee of the Foreign Trade Chamber (Gecex) approved an intermediate rate of 30%, with the government recommending continued monitoring of market conditions.

The measure forms part of Brazil's temporary exceptions to the Mercosur Common External Tariff framework. Its application remains subject to relevant trade preferences and exceptions, and it is distinct from anti-dumping duties.

Domestic Manufacturers Welcome Additional Protection

ANIP has welcomed the decision, arguing that rising imports have significantly reduced the domestic tyre industry's share of Brazil's replacement market.

According to figures published by the association, domestically manufactured tyres accounted for 66% of replacement market sales in 2019. During the first nine months of 2026, that share had fallen to 30%, with imported tyres accounting for the remaining 70%.

ANIP attributes much of this shift to increasing imports from China and other Asian manufacturing markets.

Rodrigo Navarro, president of ANIP, said the measure was important for protecting employment, investment and Brazil's wider tyre manufacturing supply chain, which includes natural rubber, steel, chemicals and textiles.

The association has also welcomed the reinstatement of non-automatic import licensing requirements for certain tyre products, describing the separate measure as an additional mechanism for strengthening import controls.

Importers Warn of Higher Prices and Reduced Competition

The Associação Brasileira dos Importadores e Distribuidores de Pneus (ABIDIP) has challenged the tariff increase.

The organisation argues that higher import costs could translate into increased retail prices, reduced competition and restrictions on tyre availability.

ABIDIP has also warned that additional duties could encourage irregular trading practices rather than address what it considers underlying competitiveness challenges within Brazil's domestic manufacturing sector.

Its president, Ricardo Alípio, has called for greater emphasis on enforcement, product traceability and action against smuggling, tax fraud and non-compliant tyre products.

These concerns contrast with ANIP's position that stronger import protection is necessary to restore more balanced market conditions.

Implications for the International Tyre Market

The tariff introduces an additional consideration for international manufacturers supplying Brazil's passenger tyre replacement market, particularly exporters competing primarily on price.

Importers and distributors may need to review sourcing costs and pricing arrangements, although the effect on individual businesses will depend on product origin, applicable trade arrangements and commercial circumstances.

The decision also comes as international tyre manufacturers examine opportunities to establish production closer to major consumer markets.

In April 2025, Tyre News Media reported that Linglong Tire and Sunset had agreed a proposed €1 billion tyre manufacturing joint venture in Brazil, illustrating the country's continuing importance as a manufacturing and distribution market.

Brazilian authorities have recommended monitoring tyre import volumes, prices, domestic production and market supply during the temporary tariff's 12-month term.

The extent to which the higher duty changes import demand, local manufacturing activity or consumer prices will become clearer as the measure takes effect.

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Tags: Brazil tyre tariffs, passenger tyre imports, Brazilian tyre industry, ANIP, ABIDIP, tyre import duty, Gecex Resolution 978, international tyre trade, Brazilian replacement tyre market, tyre manufacturing.

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