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US targets Brazil’s Pix with 25% tariffs tied to digital payments dispute
The U.S. is framing Pix, run by Brazil’s central bank, as a potential disadvantage to U.S. digital trade and electronic payment firms as the new 25% duties take effect.
Brazil’s instant payments system Pix has become a flashpoint between Brasília and Washington as the Trump administration moves to protect U.S. firms from what it says is Pix’s growing reach in other countries, according to Reuters. U.S. Trade Representative Jamieson Greer cited Pix, operated by Brazil’s central bank, among barriers to trade used to justify fresh 25% tariffs on imports from Brazil that are set to take effect this week. A senior Trump administration official said Washington is not seeking to eliminate Pix, but is pushing to ensure it does not receive special treatment because it is government owned and operated.
Brazilian officials have argued that U.S. criticism is aimed at protecting U.S. credit card companies, and USTR documents say Brazil’s practices may undermine the competitiveness of U.S. companies engaged in digital trade and electronic payment services. Brazil’s central bank chief Gabriel Galipolo dismissed complaints about Pix’s impact on card revenues as absurd, saying credit card usage has increased in absolute terms because Pix drove more Brazilians to open bank accounts. Reuters reports Pix launched in 2020, became dominant in Latin America’s largest economy, and now accounts for more than half of all transactions in Brazil by volume, with about 170 million users, or roughly 80% of the population.