Seeking to protect local industry, the Brazilian government is sharply raising taxes on imported cars and trucks under a decree published Friday in the country's Federal Register.
The measure initially announced at a news conference Thursday increases the industrialized products tax by 30 percentage points on vehicles that fail to meet rules about local content.
The new rates range from 37 percent to 55 percent, depending on a variety of factors such as vehicle and engine types. This is on top of import duties and other importing costs.
The decree has exemptions for companies that meet six of 11 new rules about local content. The rules include having at least 65 percent of their vehicles' parts made in Mercosur countries, investing significantly in research or doing most of their assembly work in Brazil.
The measure is meant to protect Brazil's domestic industry, Finance Minister Guido Mantega said Thursday.
"We are the fifth largest vehicle market in the world and the seventh largest producer, but we might lose our position if we don't take measures," Mantega said in Brasilia.
The duties take effect in two months.