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The invasion of Chinese tires in Brazil, with extremely low prices, raises a red alert in the sector. Thousands of jobs are at stake, and Anip fights to protect the national industry. But is increasing import tariffs the solution or will it just bring more costs to consumers?
A new phenomenon in the Brazilian market may be threatening the entire tire production chain in the country. With extremely low prices, tires imported from China are flooding Brazil, generating concerns across the sector and raising the possibility of a serious industrial crisis.
The main concern? The maintenance of thousands of jobs and the survival of local industries, which face unfair competition that could shake their structures.
According to a study carried out by LCA Consultoria Econômica, commissioned by the National Association of the Tire Industry (Anip), the price difference reaches an impressive 69% below the value charged on the international market.
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While in the United States, Mexico and France the average import price for cargo tires is around US$4 per kilogram, in Brazil, these products reach just US$2,9 per kilogram. This alarming discrepancy is facilitated by the low tariff barriers applied to Chinese tires in the country.
Threat to national industry
The situation is serious and mainly concerns Brazilian manufacturers. According to Anip, Brazil currently has 11 tire manufacturers, operating in 21 industrial plants and directly employing around 32 thousand people.
Furthermore, the sector is responsible for generating more than 500 thousand indirect jobs across the country. The fierce competition with Chinese products, which reach much lower prices, puts this entire structure at risk, potentially leading to the deindustrialization of the sector.
“This situation puts thousands of jobs at risk and could lead to the deindustrialization of the sector in Brazil”, warns Klaus Curt Müller, executive president of Anip. With such a direct threat to the national industry, the association has sought measures to protect jobs and local production.
Request for rate increase
In response to this challenging scenario, Anip asked the government to increase the tire import tariff, increasing it from 16% to 35% for a period of 24 months.
The proposal aims to create fairer competitive conditions and prevent the bankruptcy of national companies, which could result in a significant loss of jobs.
However, the measure also brings with it concerns for consumers. An increase in tariffs could mean an adjustment in final tire prices, directly affecting Brazilians' pockets.
On the other hand, Anip argues that this action is crucial to guarantee the survival of the national industry. According to the association, the costs of a tire in Brazil are influenced by several factors, including labor, logistics and internal taxes, and not just the price of the raw material.
The proposal to increase the import tariff is still being analyzed by the Chamber of Foreign Commerce (Camex), and its approval or rejection could define the direction of the sector in the coming years.
And do you believe that imposing higher tariffs can really save the Brazilian tire industry, or will this just bring more costs to consumers?
It will certainly bring higher costs to consumers, in addition to inflation, since the price of tires directly impacts the cost of freight, which in turn impacts the cost of goods. There is no national tire industry; all plants of international manufacturers operate in Brazil. In the end, multinational industries just want to earn more and more in Brazil, that's all.