According to the latest data released by the National Confederation of Industry (CNI) in Brazil on Monday (27th), 29% of Brazilian consumers have abandoned shopping on international websites due to the costs of import taxes. Among the group of consumers who have shopped on foreign websites in the past 12 months, the abandonment rate is even higher at 38%, compared to just 13% in May 2024.

This import tax, also known as the "Taxa das blusinhas" (blouse tax), is a colloquial term for the low-value import duty imposed by the government, specifically targeting small orders of low-priced clothing purchased on overseas platforms like Shein, AliExpress, and Shopee. Implemented since August 2024, this tax levies a 20% import tax on cross-border parcels under $50, aiming to protect domestic industries and enhance tax fairness.

According to Marcio Guerra, the economic director of CNI, the 20% tariff on imports under $50 is a "positive" step for the Brazilian industry. "Imposing import taxes is a start aimed at bringing more fairness and competitiveness to the domestic industry. However, the current tax levels are still far below what is needed for balance, as our tax burden remains much higher compared to other countries."

Specific taxation rules stipulate that for purchases made on international websites under $50, a 20% import tax (federal tax) and a 17% Goods and Services Circulation Tax (ICMS, state tax) are imposed; for purchases over $50, a 60% import tax (federal tax) and a 17% ICMS tax (state tax) are levied.

Due to this new tariff policy, 32% of Brazilian consumers have started looking for similar products shipped domestically, up from 22% in May last year.

The survey also indicates that 14% of consumers have shifted to looking for similar products in physical stores; the percentage of consumers looking for similar products on other international websites or apps has increased from 6% in May last year to 11%; while the percentage of those completely abandoning purchases has decreased from 58% to 42%.

The collection of ICMS also affects consumers' decisions when making international purchases. 36% of consumers have abandoned imported goods due to tax costs, up from 32% previously.

The prices of international shipping and long delivery times are also significant factors leading consumers to abandon purchases. 45% of consumers have abandoned orders upon learning about shipping costs, up 5 percentage points from the survey in May last year. Additionally, 32% of consumers have abandoned purchases upon learning about the shipping time, slightly lower than the 34% recorded in May 2024.

CNI economic analyst Márcio Guerra stated that these data reflect an increasing rationality among Brazilian consumers when shopping. "This may indicate that Brazilian consumers are becoming more rational in their shopping. In other words, the so-called 'blouse tax' is causing people to rethink factors they previously overlooked due to significant price differences."

The survey also inquired about the purpose of consumers shopping overseas. Approximately 75% of respondents stated that all purchased items were for personal use; only 10% indicated purchases were for work purposes; and a mere 2% of consumers stated purchases were for resale.