U.S. threatens 25% tariffs over Brazil's Pix payment system

The United States Trade Representative is weighing a 25% tariff on certain Brazilian exports after naming the country's free, instant‑payment rail Pix as a barrier to American firms. Washington argues that Brazil’s central‑bank‑run system gives the state‑owned platform an unfair advantage over U.S. card‑payment companies and creates a conflict of interest because the regulator also operates the service.

Brazil defends Pix as a public‑good that now handles about 54% of all transactions and is used by roughly 80% of the population, bringing millions of previously unbanked people into the financial system. President Luiz Inácio Lula has called it a national achievement, while officials say it even benefits U.S. firms such as Google and Visa. The USTR’s inquiry cites “unfair and discriminatory” practices, and a July 15 deadline looms for a final decision on the tariff.

In parallel, a June 5 U.S. designation of two Brazilian crime groups as foreign terrorist organisations raises the risk that sanctions could affect money flows through Pix, potentially tightening dollar‑clearing costs for Brazilian lenders. Analysts warn that any pull‑back by U.S. banks would raise financing costs across Brazil’s economy, heightening the stakes of the trade dispute.