Reducing Barriers: New Tariff Cuts Boost Import Competitiveness in Consumer Goods and Agrochemicals

With the publication of Decree 384/2024 in the Official Bulletin, import tariffs on refrigerators, washing machines, tires, and plastic supplies were reduced. This was announced by presidential spokesperson Manuel Adorni on Twitter. The decree also included reductions in tariffs for herbicides and fertilizers, enabling the importation of a foot-and-mouth vaccine.

Tariffs for refrigerators and washing machines were reduced from 35% to 20%, aligning them with the rates shared by Mercosur member countries. Tires saw a reduction from 35% to 16%, benefiting truck and bus covers specifically. Plastic inputs experienced a drop from 12.6% to 6%, with a focus on polypropylene, polyethylene, and PVC.

The reduction in tariffs for herbicides and fertilizers will have a positive impact on the agricultural sector, with tariffs on agrochemicals reduced from 35% to lower percentages. The government’s aim is to lower import costs for businesses and ultimately reduce prices for consumers. While the government hopes for a favorable impact on consumer prices, there are doubts about the immediate effects of the tariff reductions. Importers’ willingness to pass on the tax reduction to consumers and the need to eliminate the Country Tax to compete on a level playing field with subsidized imports from China are concerns raised by local manufacturers.