Brazil automotive industry protests zero‑tariff import quotas for electric‑vehicle kits

The Executive Committee for Foreign Trade Management (Gecex) extended a zero‑tariff import quota of US$463 million for disassembled (CKD) and semi‑knocked‑down (SKD) electric‑vehicle kits for six months starting in July. Industry groups warned that the measure unfairly harms domestic manufacturers that operate full‑scale factories in Brazil.

The Center of Industries of São Paulo (Ciesp) said the extension “is an attack on the national automotive industry, its parts manufacturers and the workers,” noting that it threatens thousands of jobs and jeopardises R$140 billion in planned decarbonisation investments. Similarly, the Federation of Industries of the State of São Paulo (Fiesp) argued that the surprise rule change “violates legal certainty, sabotages regulatory predictability and penalises the entire Brazilian automotive chain.”

Both organisations contend that the policy contradicts the previously announced import‑tariff schedule, which would raise duties on electric vehicles to 35% by January 2027, and could undermine ongoing investments in local production and employment.