Brazil's Flat 35% Tariff from 1 July Resets Landed Cost

The key point: For importers selling into Brazil, 1 July 2026 is the line in the sand: the MOVER green-mobility grace period ended and a flat 35% import duty now applies to every vehicle, wiping out the rate edge EVs once enjoyed.The practical point is that your landed-cost model must be rebuilt from scratch, not patched onto last year's low-tax assumptions.Whoever prices the tax correctly first controls the Brazilian market this year.

The context is a stepwise phase-out.In short, the tariff line is flat, but 'build in Brazil' remains a channel that can cut cost materially.

The math makes it concrete.São Paulo state ICMS is just 3% for EVs but 18% for ordinary cars.Clear it in an 18% ICMS state and the cost climbs several thousand dollars more.

Three hard effects hit importers.First, quotes must fold the tax-on-tax ICMS into landed cost, not just the 35% duty.Second, the state of clearance directly sets total tax; EV-friendly states like São Paulo save a large slice.Together, these mean you cannot pick models on FOB price alone.

Before ordering, do three things.First, ask the supplier whether the model has CAT, LCVM and INMETRO certification for Brazil, without which it cannot clear.Second, add a separate ICMS line in your quote model and roll it at the target state's rate.Third, prefer brands already building or assembling in Brazil or nearby.Send the spec sheet to get a Brazil landed-cost estimate for a specific model.