A highly visible tariff issue
The automotive sector is often used by EU institutions to show the scale of pre-existing barriers in Mercosur markets.
What changes from 1 May 2026
According to the official factsheet, duties on EU electric and hybrid vehicles fall immediately from 35% to 25%, while internal-combustion vehicles move from 35% to 17.5%. Many car parts enter a progressive dismantling schedule over ten years.
More than a customs story
The impact goes beyond finished vehicles. It also concerns parts, suppliers, logistics, technical compliance, service and financing. For companies, this is a whole-chain question, not just a tariff headline.