BUSINESS

Brazil Reinstates Tax Break That Stands to Benefit Chinese Vendors

Published: May. 15, 2026 6:44 p.m. GMT+8

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Containers at the Port of Rio de Janeiro, Brazil. Photo: VCG

Brazil has reinstated a tax exemption for imported goods worth $50 or less, giving Chinese cross-border e-commerce sellers a lift as other markets such as the U.S. and Europe tighten restrictions on low-value parcels from China.

President Luiz Inácio Lula da Silva signed an executive order Tuesday removing federal import taxes on low-value parcels, reversing a policy introduced less than two years ago that had sharply raised costs for overseas online purchases.

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Brazil reinstated tax exemption for imports ≤$50 via Lula's executive order, cutting tax burden to 20.4% from 44.5%; $45 item now costs $54 vs. $65.
Move aids Chinese e-commerce sellers as US (Trump ends de minimis < $800), EU (3€ duty <150€ from Jul 2026), Italy, Mexico, Vietnam tighten rules.
Brazil, with >200M population and growing e-commerce, key for AliExpress, Shein, Temu.

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Who’s Who

Alibaba Group Holding Ltd.: Alibaba Group Holding Ltd.’s AliExpress entered Brazil over a decade ago and stands to benefit from Brazil's reinstated tax exemption on imported goods worth $50 or less, boosting Chinese cross-border e-commerce in this fast-growing market.

Shein: Shein, a Chinese e-commerce platform, has aggressively expanded in Brazil, benefiting from the reinstated tax exemption on imports under $50. Amid US President Trump's tariffs ending duty-free low-value parcels and EU restrictions, Shein must rework logistics, making Brazil a key growth market.

PDD Holdings Inc.: PDD Holdings Inc.'s Temu has aggressively expanded in Brazil, a key market for Chinese e-commerce amid the reinstated tax exemption on imports worth $50 or less, easing costs as Western markets tighten restrictions.

Mercado Libre: Mercado Libre is a Latin American e-commerce giant. Thomaz Gelis Fittipaldi, head of its China operations, stated that Brazil—with over 200 million people and e-commerce penetration below China and the U.S.—offers significant growth potential.

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