Brazil’s Lula Scraps Tax on Imports Under $50 Before Election

Brazil's President Luiz Inacio Lula da Silva speaks during the launch ceremony of a program to combat organized crime at the Planalto Palace in Brasilia, Brazil, May 12, 2026. REUTERS/Adriano Machado

Brazil’s President Luiz Inacio Lula da Silva on Tuesday signed an executive order to eliminate federal taxes on foreign purchases worth up to $50, reversing course on a highly unpopular levy as he gears up to seek re-election in October.

The move is expected to lower the cost of goods bought on cross-border e-commerce platforms widely used by lower-income Brazilians.

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by Reuters

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