Brazil increases tariffs on Chinese tire imports

The Brazilian Chamber of Foreign Trade (Camex) has decided to raise tariffs on imports of passenger car tires from China from 16% to 25% for 12 months, while tariffs in the truck tire segment will remain at the same level.

The size of the duties was revised in response to a petition filed by the Brazilian Association of Tire Manufacturers, ANIP, which called for tariffs to be raised to 35% for two years, citing that cheap tires from Asia, mainly from China, are being offered at "unfair" prices, posing a threat to the local industry.

"Tires are being imported into the country at prices lower than those on the international market," ANIP said, adding that, according to the results of an investigation conducted by the consulting firm LCA, increasing tariffs could increase tire production in the country by billions of dollars and would be beneficial to all industry players, including rubber, steel, textile, and chemical manufacturers.

"Unfair competition from Asian tire suppliers is leading to job losses and may cause investments in the country to come to a halt," said Klaus Kurt Mueller, executive president of ANIP.

The LCA investigation showed that truck tires are being imported into Brazil at a price of $2.9 per kilogram, while on the international market they are sold for $4.2 per kilogram. In the passenger car tire sector, the difference is even more significant - $3.2 versus $5.7 per kilogram.

"Without restrictive measures, the Brazilian industry will be unprotected, which will exacerbate the process of deindustrialization of the country," Mueller emphasized.

According to ANIP, currently, there are 11 tire manufacturers operating in Brazil, owning 21 plants, and the industry has created 32,000 direct and 500,000 indirect jobs.

Source of photo: jornalhoraextra.com.br.