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Governors Ask Camex and Geraldo Alckmin to Suspend Changes in Electric Vehicle Tariffs to Avoid Risks to the National Industry!
Governors of Minas Gerais, Paraná, Rio de Janeiro, Rio Grande do Sul, Santa Catarina, and São Paulo joined forces to request the Vice President and President of the Foreign Trade Chamber (Camex), Geraldo Alckmin, to suspend the reduction of import tariffs for electric vehicles.
The document sent in the last week of July indicates that the measure, if approved, could directly affect the national automotive industry, reduce jobs, and jeopardize investments in the sector.
The request includes opening dialogue with producing states and automakers before any final decision.
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What’s at Stake with Tariff Reductions
The main concern of the governors is the impact of tariff reductions on local production. The formal request highlights that the import of semi-knocked down (SKD) and completely knocked down (CKD) electric vehicle kits at lower values may discourage assembly in Brazil.
According to the document, substituting national production with simple imports could compromise the competitiveness of the automotive supply chain, reducing value-added generation and weakening already-established suppliers and system integrators in the country.
The Origin of the Electric Vehicle Debate
The movement comes after the Chinese automaker BYD requested Camex, in February, to reduce import tariffs to 5% for electric vehicles and 10% for hybrids.
Currently, the applied tariffs are 18% and 20%, respectively.
BYD is interested in using these formats at the manufacturing unit installed in Camaçari, Bahia, taking advantage of tax benefits to enhance its competitiveness in the Brazilian market.
National Production and Jobs at Risk
The six states that signed the request account for the majority of electrified vehicle manufacturing in Brazil, with automakers, system integrators, and specialized suppliers.
According to the governors, this structure employs approximately 50,000 workers and supports continuous investments in research and development.
Any measure that encourages imports over local production could put these jobs at risk and discourage new industrial installations.
Request for Dialogue Before Decision
In the letter sent to Geraldo Alckmin, the governors request that Camex postpone any tariff changes until there has been a broad discussion with representatives of the producing states and the automotive industry.
The group argues that it is necessary to find a balance between encouraging the use of electric vehicles in Brazil and protecting the national industry.
For them, unilateral decisions could compromise industrial policy and the technological advancements made in recent years.
Next Steps in the Automotive Landscape
There has yet to be a definition on Camex’s official response to the governors’ request. However, industry experts say that the decision will have a direct impact on the competitiveness of national production and the pace of adoption of electrified vehicles in the country.
As the industry awaits the government’s position, the debate over electric vehicle tariffs is expected to intensify, with different sectors defending competing interests between promoting sustainable mobility and protecting the Brazilian manufacturing sector.
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