Argentina eliminates export tax, and car prices in Brazil could fall

Argentina has eliminated the export tax on cars produced in the country, which currently stands at 4.5%. The new measure will take effect starting in July, according to information released by the website Autoblog. Further details are expected to be announced by the Ministry of Economy in the coming hours, but the change is expected to remain in place until June 2027.

The reduction of the export tax was a long-standing demand from automakers operating in Argentina, represented by Adefa, the country’s automakers association. According to the group, the tax hurt the competitiveness of vehicles manufactured in the country.

Argentina’s auto industry expects that the tax cut will reduce the final cost of exports by 2%, which could be reflected in the final price of cars shipped to other countries. As a result, competitiveness is expected to improve compared to other markets that also produce and export vehicles.

However, not all challenges will be resolved, as competition in foreign markets with Chinese-made cars is expected to remain difficult.

The tax reduction could help Argentina regain its position as the main trading partner of Brazil’s automotive industry. Traditionally, Argentina was the country that exported the most cars to Brazil, but China overtook it in 2026 due to the rapid growth of Chinese electrified vehicles in the Brazilian market. Argentina currently ranks second, with 54,900 cars exported to Brazil from January to April.

Javier Milei said the intention is to shrink the state at this moment by reducing taxes and strengthening local industry. Export taxes were also eliminated for the agricultural sector that exports grains and other products.

Source: Autoesporte

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