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Final Ruling Issued! Brazil Strikes Again with Trade Barriers

2025-12-10

On December 2, 2025, the Executive Management Committee of Brazil's Foreign Trade Chamber (GECEX) issued Resolution No. 819 of 2025, once again wielding the "heavy hammer" of trade barriers against China's motorcycle tire industry. The resolution made an affirmative final ruling in the second anti-dumping sunset review on motorcycle tires originating from China, Thailand, and Vietnam, deciding to continue imposing anti-dumping duties for another 5 years. Among them, the duty rate on Chinese products is as high as $2.18 per kilogram, the same as that on Vietnamese products, while the rate on Thai products stands at $1.10 per kilogram. The resolution took effect on the date of issuance and covers products under Mercosur tariff code 4011.40.00.

This marks the 13th year that Brazil has imposed anti-dumping measures on Chinese motorcycle tires. Tracing back to the origin of this trade friction, on June 25, 2012, Brazil launched its first anti-dumping investigation into motorcycle tires from mainland China, Taiwan region of China, Thailand, and Vietnam. In December 2013, Brazil made an affirmative final ruling, imposing anti-dumping duties ranging from $2.21 to $7.40 per kilogram on mainland Chinese products, and terminated the investigation into Taiwan region of China. Later, following the first sunset review in 2018 and the affirmative ruling in 2019, Chinese motorcycle tires have been burdened with a duty of $2.18 per kilogram in the Brazilian market. In December 2024, at the application of the Brazilian Tire Industry Association, Brazil initiated the second sunset review, which ultimately led to this ruling.

Brazilian Market: Coexistence of High Demand and High Barriers

As an important motorcycle and tire market in South America, Brazil boasts a large consumer base. Data shows that Brazil's motorcycle sales reached approximately 1.5 million units in 2023, with the in-service motorcycle fleet exceeding nearly 30 million units, generating a stable and substantial demand for tire replacements. Thanks to their cost-performance advantage, Chinese motorcycle tires once accounted for about 80% of Brazil's imported tire market, and Brazil also became the largest export market for Chinese motorcycle tires (especially inner tubes).

However, the protection demands of the local industry have led Brazil to frequently resort to anti-dumping measures. The Brazilian Tire Industry Association has repeatedly emphasized that imported products have caused damage to its domestic industry. The renewal of anti-dumping duties this time is a continuation of such protectionist policies.

Chinese Tire Enterprises: Surging Costs and Pressured Market Share

The anti-dumping duty of $2.18 per kilogram is undoubtedly a heavy burden for Chinese motorcycle tire exporters. Based on the average export price of Chinese motorcycle outer tires of approximately $2.66 per kilogram in 2024, the anti-dumping duty accounts for more than 80% of the export price. When combined with other tariffs, logistics, and operational costs, China's original price advantage in tires will be completely eroded, and the market share in the mid-to-low-end segment will face a serious risk of loss.

For leading international tire manufacturers such as Giti Tire, Linglong Tire, Zhongce Rubber, and Triangle Tire, although this anti-dumping duty on motorcycle tires is not directly targeted at their automobile tire products (Brazil has previously imposed anti-dumping duties on specific automobile tires), the deteriorating overall trade environment has undoubtedly increased uncertainties for their operations in Brazil and even the entire Latin American market.

Final Ruling Issued! Brazil Strikes Again with Trade Barriers 1

Paths to Breakthrough: Diversification, High-Endization and Localization

Faced with Brazil's persistent high tariff barriers, Chinese tire enterprises urgently need to adjust their strategies to seek a way out:

Active Response to Lawsuits for Fair Treatment: Encourage enterprises to actively participate in anti-dumping investigations, strive for individual tax rates, and reduce the overall tax burden.
Product Upgrading to Move Up the Value Chain: Increase R&D investment, transform towards green, intelligent, and high-performance tires, shift from price competition to technological and brand competition, and enhance product added value.
Market Diversification to Disperse Risks: Reduce reliance on a single market and actively explore other Latin American countries and markets along the "Belt and Road" initiative. Data indicates that in 2024, the proportion of China's exports of relevant motorcycle outer tires to non-Latin American markets has reached 88%, laying a solid foundation for market diversification.
Overseas Factory Establishment to Circumvent Trade Barriers: Learn from the experience of leading enterprises, realize localized production through overseas investment and factory construction, bypass tariff barriers, and get closer to target markets.

Industry Warning: Trade Frictions Have Become Normalized; Enhancing Core Competitiveness is the Key

The renewal of anti-dumping duties on Chinese motorcycle tires by Brazil once again highlights the long-term nature and complexity of international trade frictions. Having experienced multiple trade frictions, China's tire industry has accumulated certain response experience. The Ministry of Commerce and relevant institutions also suggest that enterprises closely monitor policy dynamics, obtain assistance through multiple platforms, strengthen international cooperation, and promote trade liberalization.

In the future, only by strengthening internal capabilities, enhancing core competitiveness, and accelerating the transformation from "large in quantity" to "strong in quality" through technological innovation, brand building, and global layout can Chinese tire enterprises remain invincible in the complex international trade environment. Although trade barriers bring growing pains, they are also forcing China's tire industry to accelerate its transformation. As important trading partners, China and Brazil should properly resolve differences through dialogue and consultation, promote balanced trade development, and achieve mutual benefit and win-win results. In this global chess game, keeping a close eye on policy "weather forecasts" and actively using rules to safeguard rights and interests will be a compulsory course for Chinese enterprises to cope with challenges.

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