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NewsFlash / Steel / Brazil raises EV tariffs ahead of schedule, rejecting BYD's request for tariff reduction
Brazil raises EV tariffs ahead of schedule, rejecting BYD's request for tariff reduction
Jul 31, 2025 09:25
Jul 31, 2025 09:25Source:SMM
The Brazilian Foreign Trade Council (Camex) announced:
1. Tariffs on imported EVs to be raised 18 months earlier: Starting from January 2027, tariffs on hybrid and pure EVs will be uniformly increased to 35% (originally scheduled for implementation in July 2028).
2. Rejection of BYD's request: Maintain the current tax rates for SKD (Semi-Knocked Down) and CKD (Completely-Knocked Down) assembly (28% for hybrid vehicles and 25% for pure EVs), and did not approve the proposal to reduce them to 10% and 5%, respectively.
3. Six-month temporary duty-free quota: SKD/CKD imports will be duty-free for six months starting from today (with a quota of $463 million), and the original tax rates will be restored after exceeding the limit or upon expiration.
The Brazilian Automobile Association (Anfavea) supported the decision, accusing Chinese automakers of "unfair competition." BYD responded by stating that local assembly creates jobs and sarcastically remarked that traditional automakers are "afraid of Chinese technology.
1. Tariffs on imported EVs to be raised 18 months earlier: Starting from January 2027, tariffs on hybrid and pure EVs will be uniformly increased to 35% (originally scheduled for implementation in July 2028).
2. Rejection of BYD's request: Maintain the current tax rates for SKD (Semi-Knocked Down) and CKD (Completely-Knocked Down) assembly (28% for hybrid vehicles and 25% for pure EVs), and did not approve the proposal to reduce them to 10% and 5%, respectively.
3. Six-month temporary duty-free quota: SKD/CKD imports will be duty-free for six months starting from today (with a quota of $463 million), and the original tax rates will be restored after exceeding the limit or upon expiration.
The Brazilian Automobile Association (Anfavea) supported the decision, accusing Chinese automakers of "unfair competition." BYD responded by stating that local assembly creates jobs and sarcastically remarked that traditional automakers are "afraid of Chinese technology.
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