The news came out of nowhere.

On December 5, 2025, Brazil’s Foreign Trade Commission issued an announcement: anti-dumping duties on vehicle speakers from China will remain at 78.3% for five years.

What does 78.3% mean? If your factory price for a speaker is 100 yuan, you’ll be hit with 78 yuan in taxes just at customs. That’s not even counting basic tariffs, logistics, and channel markups. By the time it reaches the consumer, the price has doubled or even tripled. China’s manufacturing relies on cost-performance and iteration speed—this kind of tax wipes out those advantages.

This isn’t the first time Brazil has taken action. Tires, ceramics, stainless steel, chemicals… The list of anti-dumping measures against Chinese products could fill a whole page. Protecting domestic industries is understandable, but locking things down for five years and setting tax rates close to 80%—that logic is a bit thought-provoking.

Let’s look at the numbers. China has been Brazil’s largest trading partner for years. In 2024, bilateral trade exceeded $150 billion, with Brazil running a long-term surplus with China. Soybeans, iron ore, beef flow continuously to China. But when it comes to industrial goods, the door suddenly closes. Trade relationships should be two-way, but now it’s more like “I sell, you buy; don’t expect to sell to me.”

Some say this is to protect domestic manufacturing. The intention is understandable, but you can’t grow tall trees in a greenhouse. High tariffs often block backward capacity. Consumers are forced to accept pricier or lower-quality goods, and local companies lose the pressure to upgrade through competition. What Brazil’s auto parts industry really needs isn’t self-isolation, but integration into global supply chains and growing stronger through competition.

Looking at the bigger picture? The global economic recovery is weak, and protectionist policies are making a comeback. Brazil’s decision is a microcosm of this trend. Everyone wants to keep their jobs, but if everyone builds walls, all our tables may end up poorer. Open trade is the proven way to promote growth and reduce inflation—history has already shown this.

For Chinese companies, this is a wake-up call and a warning.

Market diversification can’t just be lip service. You can’t put all your eggs in one basket, nor can you count on other countries’ policies always being friendly. Technology upgrades, brand value, local partnerships—these tried-and-true strategies are now more urgent and realistic than ever.

Five years is enough for two generations of products in the tech industry. Can our companies, in these five years, create products that make any tariff seem irrelevant? It’s a tough question, but one that must be answered.

Brazil’s wall has made it clear once again: international trade is no fairy tale. It’s complex, realistic, and full of gamesmanship. The road to going global is never smooth—only by becoming stronger, more flexible, and truly indispensable can we weather the storm and see a broader sky.