Brazil refuses to change PIX, offers new safeguards to US to avoid 25% tariffs

Brazil’s government presented a "map of the way" to U.S. Trade Representative Jamieson Greer, outlining actions it will take to prevent a possible 25% tariff on Brazilian products. The plan covers five of the six issues identified by a U.S. Section 301 investigation – preferential tariff practices, ethanol market access, intellectual‑property protection, anti‑corruption measures and illegal deforestation – but keeps the digital payment system PIX unchanged, as mandated by President Luiz Inácio Lula.

The proposal, led by Development Minister Márcio Elias, also includes a tariff‑reduction schedule for about 300 items in three sectors – agricultural machinery, hospital equipment and information‑technology products – which would benefit U.S. importers. The United States has set a July 15 deadline to decide whether to impose the additional tariff. Lula has publicly denounced critics of the negotiations as "traitors of the homeland," while the Brazilian foreign ministry argues that the PIX issue is a matter of domestic policy, not trade.

Brazil aims to maintain the status quo on PIX while showing goodwill on the other topics, hoping the United States will view its measures as non‑discriminatory and withdraw the tariff threat.