The United States will apply a 25% tariff on most Brazilian goods starting July 22. Officials say the move targets Brazil's Pix instant payment system. The action marks the first use of Section 301 authority against a foreign payment network.
The tariffs aim to counter what Washington describes as unfair practices that favor Pix over American firms such as Visa and Mastercard. Pix requires institutions with more than 500,000 accounts to offer free transfers to individuals and caps fees for businesses.
U.S. Trade Representative Ambassador Jamieson Greer stated, “Today’s action is necessary to address these unfair trade practices to ensure American workers and companies can compete on a level playing field.” Pix now processes more transactions than credit and debit cards combined.
Dollar-linked stablecoins already handle roughly 90% of Brazil’s crypto volume and between $6 billion and $8 billion in monthly transactions. Brazilian regulators plan to restrict stablecoin use in cross-border payments from October 1 under Resolution 561.
