Brazilian President Lula's government's Foreign Trade Committee of the Executive Management Committee (Gecex-Camex), consisting of 11 ministries, will hold a special meeting on July 30, 2025, to discuss measures to secure import tariff concessions for the Chinese automotive industry in Brazil.

According to Zhongjin's understanding, this meeting is unrelated to the United States imposing a high 50% tariff on Brazilian goods and is being convened independently. The meeting will review a request from the Chinese automaker BYD. BYD has requested a reduction in import tariffs on SKD (Semi-Knocked Down) and CKD (Completely Knocked Down) automotive components. It is expected that the import tariffs on SKD/CKD components for pure electric vehicles will be reduced from the current 18% to 5%, and for hybrid models, the tariffs will be reduced from 20% to 10%.

President Lula plans to visit BYD's factory in Camaçari, Bahia state in August to participate in the company's official production launch in Brazil. He has praised BYD, stating that the company is driving a "revolution in the Brazilian automotive industry." In an interview with Bahia TV, Lula stated, "After Ford showed such disrespect to Bahia and Brazil, hardly anyone would have imagined that we would bring in a car manufacturer from China that is going to revolutionize the Brazilian automotive industry."

BYD's factory in Bahia state began operations at the end of June this year, using a model where vehicle components are imported from China to Brazil for assembly. BYD is aiming to lower the import tariff rates for both CKD and SKD import modes. At the Camaçari facility, BYD will produce its two best-selling models in Brazil: the pure electric hatchback Dolphin Mini and the mid-sized electric SUV model Song Pro, which are expected to be among the first locally-produced electric vehicles in Brazil.

The Brazilian government's proposal to explore reducing import tariffs on a full set of automotive components has sparked strong opposition within the domestic automotive industry. The National Association of Automobile Manufacturers (Anfavea) in Brazil has written to Vice President and Minister of Development, Industry, Trade, and Services Geraldo Alckmin and the Director of the Civil Office of the Presidency Rui Costa, clearly opposing this tariff reduction plan, believing it will impact the traditional Brazilian automotive industry.