USTR proposes 25% tariffs over Brazil’s Pix

The U.S. Trade Representative has proposed 25% tariffs on goods from Brazil under Section 301 of the Trade Act of 1974, after concluding that policies tied to Brazil’s instant-pay system Pix disadvantage U.S. electronic payment firms and burden U.S. commerce. The agency opened a formal action and requested public comments on the proposal.

In a notice, the USTR argues that Brazil’s acts, policies and practices related to Pix impose costs on U.S. service providers and force them to promote a Brazilian competitor without compensation. The agency said the Central Bank of Brazil acts as both Pix’s operator and regulator, creating a conflict that disadvantages U.S.-based alternatives. Officials pointed to Pix’s free service for individuals and capped institutional fees as examples of preferential treatment.

The USTR’s document also lists other issues it says burden U.S. commerce, including preferential tariffs, anti-corruption enforcement practices, intellectual property protections, ethanol market access and illegal deforestation. The proposal follows a recent visit by Senator Flavio Bolsonaro to the White House, where he met President Donald Trump and discussed organized crime and tariff policies; Bolsonaro is viewed as a leading challenger to President Luiz Inácio Lula da Silva in October’s election.

Brazil’s central bank and government pushed back, calling Pix a free public infrastructure for instant payments that is widely accepted and governed by neutral rules. A government statement noted that foreign and domestic firms operate in the Pix ecosystem and that U.S. companies participate in it. President Lula defended the system and highlighted its scale, saying, “Pix belongs to Brazil, and no one is going to force us to change it, given the service it provides to Brazilian society.” Pix processed more than 7 billion transactions in April, according to Brazilian officials.

Under Section 301, the USTR may impose trade remedies such as tariffs when it finds that foreign laws or practices violate U.S. trade rights or unjustifiably burden U.S. commerce. The 25% tariff proposal is a preliminary action; the agency will review public comments and may adjust or withdraw measures before any final decision.

If implemented, the proposed tariffs would target Brazilian goods as a remedy for harms tied to U.S. services providers. The comment period and any subsequent talks set the framework for further trade and diplomatic discussions between Brasília and Washington.