Government renews quota for tax-free electric car imports

The federal government decided on Tuesday to maintain the gradual increase in import taxes for electric and hybrid cars while authorizing a temporary quota of US$ 463 million with zero tariffs for six months.

The Foreign Trade Chamber authorized the US$ 463 million limit for entry of electrified vehicles without taxation. Above that value, the full rate applies again. The deadlines for tax increases vary by vehicle type: semi-assembled or assembled models will see rises starting in July, while disassembled or semi-disassembled ones will be fully taxed from January 2027.

The decision aims to balance the automotive sector transition with decarbonization policy and encouragement of local production, according to the government. The tariff schedule remains unchanged.

The National Association of Motor Vehicle Manufacturers criticized the measure. The entity stated that the resumption of incentives for importing parts goes against national industry interests and reduces predictability for investments. Anfavea noted that the industry has already announced about R$ 140 billion in investments until 2033.

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Illustration depicting Trump announcing 25% tariffs on EU cars amid trade dispute, with blocked vehicles at border and EU retaliation warnings.
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Trump announces 25% tariffs on EU cars and trucks; bloc warns of retaliation in trade deal dispute

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US President Donald Trump announced on May 1, 2026, via Truth Social, 25% tariffs on cars and trucks imported from the European Union effective next week, claiming the bloc breached last summer's trade deal. The EU insists it is complying, demands clarifications, and reserves all options for retaliation, as Germany's auto sector braces for heavy impact.

Electric and hybrid vehicle sales in Chile grew 109 percent in the first four months of the year, driven by rising fuel prices linked to the conflict in Iran.

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The federal government and states announced on March 31 an agreement to subsidize imported diesel by R$ 1.20 per liter, split equally between the Union and states, to mitigate the impact of the Iran war on fuel prices. The measure is emergency and limited to up to two months, with voluntary adherence. More than 80% of states have signaled interest in participating.

The Donald Trump administration announced on April 2 that it will impose 50 percent tariffs on imported steel, aluminum and copper based on the full value paid by U.S. customers. It also adjusted tariffs on derivative metal products and introduced a 100 percent duty on patented pharmaceuticals not made in the U.S. South Korea and others are exempt from the pharmaceutical tariff.

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Chile's National Automotive Association (ANAC) reported 11,910 units of zero and low-emission vehicles sold in the first three months of 2026, a 94% increase from last year. This marks a record market share of 15.9%. March sales surged 148% to 5,893 units.

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