Recently, the government announced that it would be reducing import tariffs on essential goods following the publication of Decree 384/2024 in the Official Bulletin. This measure was announced by presidential spokesperson Manuel Adorni and aims to benefit consumers and industries alike. The tariffs on refrigerators, washing machines, tires, and plastic supplies have been reduced from their original rates, with the goal of making these products more affordable for all.
In particular, the tariff on refrigerators has been lowered from 35% to 20%, aligning it with the rates shared by Mercosur member countries. Similarly, the tariff on tires has been reduced from 35% to 16%, benefiting truck and bus covers exclusively. The reduction in tariffs on plastic inputs like polypropylene, polyethylene, and PVC has also been made from 12.6% to 6%, which is expected to lower manufacturing costs and consumer prices for a wide range of products.
In the agriculture sector, the government has made some significant strides by reducing tariffs on fertilizers and herbicides to 0% and 12.6%, respectively. This move is aimed at encouraging farmers to use these strategic inputs in agricultural activities to improve crop yields. By doing so, the government hopes that these tariff reductions will lead to lower prices for consumers, increased competition in the market, and improved economic conditions overall.
However, there are concerns regarding the immediate impact of these tariff reductions on importers’ willingness to pass on savings to consumers remains uncertain. Local manufacturers are calling for eliminating country taxes to level playing field against subsidized imports from other countries like China or United States or Europe. They warn that without this step importers may not pass savings onto consumers as promised.
Overall though, this move by the government is likely to bring relief for both consumers and industries alike as they now have access to essential goods at more affordable rates than before.
