By Mel Rodrigues
The government of Brazilian President Luiz Inácio Lula da Silva has made foreign tires more expensive. The import tax on passenger car tires jumped from 16% to 30%, and the first to feel it will be drivers who need to replace the tires on their cars.
The decision came from the Executive Management Committee of the Foreign Trade Chamber (Gecex-Camex), a government body that sets trade policy. It was published in the Diário Oficial da União, Brazil's official gazette, on Monday, Nov. 9, and took effect Tuesday, Nov. 10. The measure is valid for 12 months.
Domestic industry asked for protection and got it
The move began with Brazil's domestic tire manufacturers. They allege unfair competition from imported products, mainly from Asian countries, and asked the government for a higher barrier. Brasília, the federal government, granted the request.
Along with the tax increase, the government brought back a requirement for a non-automatic license to import tires. Under such a system, importers need prior government approval. According to the government, the goal is to prevent fraud and irregularities in the sector.
Who pays the bill: Brazilian drivers
The Brazilian Association of Tire Importers and Distributors (Abidip) has already sounded the alarm: the increase will hit lower-income families hardest. According to the group, more expensive tires also push up freight costs and drive inflation higher.
The effect does not stop at the store shelf. With higher prices, drivers tend to put off replacing worn tires or turn to used tires of unknown origin. The result is more risk on the road, at a time when consumers are already tightening their budgets.
Why it matters
Tires are an everyday expense for millions of Brazilians who depend on cars, and for the trucking sector that moves goods across the country. A tax that nearly doubles the cost of bringing in foreign tires affects both household budgets and the cost of transport, which feeds into consumer prices.
For the next 12 months, anyone who needs a new tire will be paying for the protection granted to industry. The decision was made by a government committee, without direct consultation with consumers, and the bill lands on those who drive every day.
