Brazil Renews Six-Month Zero‑Tariff Quota for Electric‑Vehicle Kits

Overview

• The Gecex/Camex committee renewed a zero‑tariff import quota of US$463 million for CKD and SKD electric‑vehicle kits for six months starting July 1, 2026.
• The government kept the broader tariff recomposition schedule in place so SKD imports face a 35% rate from July and CKD imports rise to 35% in January 2027.
• The decision chiefly benefits recent entrants that used large parts of the earlier quota, notably BYD, which says it has already invested in Brazilian production and sought continuity of the transitional terms.
• Manufacturers and supplier groups including Anfavea, Fiesp, Abipeças and Sindipeças sharply criticized the move, warned of lost parts sales and jobs, and signaled possible legal challenges.
• Policy context: the quota restores a mechanism that ran earlier this year to smooth the shift to local production while the government balances consumer prices, investment promises and industrial predictability for the auto chain.