Tariff Relief! Brazil Eliminates Import Tariffs on Nearly 1,000 Products!

On March 26, 2026, the Brazilian government, through the Executive Management Committee of the Foreign Trade Chamber (Gecex/Camex), resolved to reduce import tariffs on nearly 1,000 categories of imported goods, primarily setting the tariffs to zero. This measure was taken because these products either lack domestic production capacity or domestic output is insufficient to fully meet market demand.

I. Overview of Zero-Tariff Implementation

A total of 970 products have been included in the zero-tariff category. According to the Ministry of Development, Industry, Trade and Services (MDIC), among these, 779 products had their previous tariff preferences extended through this routine resolution. Additionally, 191 products were newly added or temporarily adjusted, with their import tariffs temporarily reduced to zero for a period of four months.

This adjustment represents an optimization of the tariff increase policy implemented in early February on over 1,200 electronic products. In February, Brazil had already eliminated import tariffs on 105 of those products.

II. Main Product Categories Covered

Agricultural Inputs: Including fungicides for agricultural use and insecticides for pest control.

Pharmaceutical and Medical Products: Elimination of import tariffs on strategic industry-related products such as treatments for diabetes, Alzheimer's disease, Parkinson's disease, schizophrenia, and hospital nutrition products.

Capital Goods and IT/Telecom Products: Including machinery and equipment for industrial production, electronic components, and information technology products, covering laptops, motherboards, smartphones, routers, mice, and memory modules. This adjustment may enhance the market competitiveness of relevant capital goods and electronic components from exporting countries such as China.

Industrial Inputs: Including raw materials for the textile industry, hops used in beer brewing, and electric motors for food mixers and food processors.

Other Categories: Including certain industrial chemicals and polyester fibers.

III. Policy Adjustment Background and Subsequent Arrangements

In early February, Brazil raised import tariffs on over 1,200 electronic products, capital goods, and IT products, with a maximum increase of 7.2 percentage points, covering items such as mobile phones, home appliances, and medical equipment. The original intention was to protect domestic industry and increase fiscal revenue, but the policy triggered objections from companies and concerns about supply chain impacts.

Due to negative reactions in Congress, public opinion, and the production sector, the Brazilian government partially rolled back the measures on February 27, 2026, restoring zero tariffs on 105 capital goods products, primarily industrial machinery and equipment. The resolution of March 26 further expanded this adjustment. Companies can apply for automatic tariff reductions by the end of March.

Additionally, the Executive Management Committee of the Foreign Trade Chamber simultaneously ruled to impose final anti-dumping duties for a period of five years on ethanolamine (a common chemical compound used in cosmetics) originating in China, and on polyethylene resin (a multi-purpose industrial plastic) originating in the United States and Canada.