Recently, the government announced a reduction in import tariffs on several essential goods following the publication of Decree 384/2024. This move aims to provide relief to consumers and industries by reducing tariffs on products such as refrigerators, washing machines, tires, and plastic supplies. The reduction in tariffs on refrigerators and washing machines has been from 35% to 20%, while the tariff on tires has been lowered from 35% to 16%. Additionally, the reduction in tariffs on plastic inputs such as polypropylene, polyethylene, and PVC from 12.6% to 6% is expected to lower manufacturing costs and consumer prices for a wide range of products.
In the agriculture sector, the government has also reduced tariffs on fertilizers and herbicides to 0% and 12.6%, respectively. This move is aimed at encouraging farmers to use these strategic inputs in their activities to improve crop yields. The government hopes that these tariff reductions will lead to lower prices for consumers, increased competition in the market, and improved economic conditions. However, there are concerns about the immediate impact of these tariff reductions as importers’ willingness to pass on savings to consumers remains uncertain. Local manufacturers are calling for the elimination of Country Taxes to level the playing field against subsidized imports. They warn that without this action, the market may be dominated by imports from China rather than opening up opportunities with other markets like the United States or Europe.