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🇧🇷 Brazil /Economy & Trade

Brazil's 'Little Blouse Tax' End Sparks Record International Orders

From Folha de S.Paulo · () Portuguese

Translated from Portuguese, summarized and contextualized by DistantNews.

At a glance

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  • Brazil's elimination of the "little blouse tax" on international orders has led to a record number of shipments since 2023.
  • In June, 28 million international orders arrived in Brazil, more than double the 13 million from the same month last year.
  • The tax's removal is criticized by the national textile industry, which faces higher U.S. tariffs, urging the government to reconsider the policy.

Brazil's decision to end the "little blouse tax" on international purchases has resulted in a record surge in shipments, with the number of orders more than doubling in a year. In June, 28 million international packages arrived in Brazil, a significant increase from just over 13 million in the same month last year and 8 million in October 2023.

The value of these shipments reached $574 million, nearly R$3 billion, marking a 107% growth compared to the previous year. This volume surpasses even the period before the government imposed a 20% import tax on purchases up to $50, which had previously caused a rush on international websites.

However, the move has drawn criticism from the national textile industry. These businesses, already impacted by former U.S. President Donald Trump's tariffs, argue that the end of the "little blouse tax" is more damaging to domestic merchants. They are urging the government to reverse the decision. The provisional measure must be voted on by Congress by September to remain valid.

DistantNews Editorial

Originally published by Folha de S.Paulo in Portuguese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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