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Brazil Accelerates Electric Vehicle Tariff Hike, Sparking Automaker Clash
30 Jul
Summary
- Brazil's trade panel Gecex-Camex brings forward tariff increase on disassembled EVs
- Tariff on CKDs and SKDs to rise from 14% to 35% in January 2027, not July 2028
- China's BYD criticized rival automakers like Toyota, VW, GM, and Stellantis
In a move that has stirred up controversy in the automotive industry, the Brazilian trade panel known as Gecex-Camex has decided to bring forward a tariff increase schedule for disassembled electric and hybrid vehicle imports. The panel announced that fully or partially disassembled vehicles, known as CKDs and SKDs, will now be subject to a 35% import tax from January 2027, instead of the previously planned July 2028.
This decision has pitted China's BYD against major automakers like Toyota, Volkswagen, General Motors, and Stellantis. Earlier this year, BYD had asked for a temporary tariff reduction on CKDs and SKDs, which generated backlash from the four carmakers. In a letter to the Brazilian President earlier this month, the automakers warned that the move could put investments in the country at risk.
Gecex-Camex has also approved an additional free-tariff quota worth $463 million for CKD and SKD imports, valid for the next six months. This comes as a partial concession to BYD's request, but the overall acceleration of the tariff hike is likely to have significant implications for the electric and hybrid vehicle market in Brazil.
