Brazil Increases Import Tariffs On Textiles, Clothing And Shoes

After the acquiescence of MERCOSUR partners, the government of Brazil has raised import tariffs on most favored nation cloth, clothing, textile products and shoes, which was announced earlier this year.

In particular, tariffs on most favored nation clothing, carpets, shoes (excluding shoes) and textiles (HS sixty-third chapters) increased from 20% to 35%, and the tariff of all fabrics actually increased from 18% to 26% (but the tariff of aramid cloth remained at 2%).

Brazil textile and garment industry association and other associations have proposed tariff increases. They complain that imports from China and other Asian countries are hurting domestic industries.

Finance minister Guido Mantega said in spring that the purpose of raising tariffs is to protect domestic industries from unfair trade competition and protect about 1 million 600 thousand of the workers in clothing and footwear industries.

He said that Brazil's currency was not manipulated and Brazil did not provide subsidies to exporters, which is different from other countries.