Brazil’s Pix Payment System Spurs US Tariff Threat Over Competition

The US has threatened 25% tariffs on some Brazilian exports, citing Pix’s dominance and alleged discrimination against American payment networks.

• The Brazilian central bank launched Pix in late 2020, and the system now handles 54% of the country’s payment transactions, with over 170 million users.
• The US Trade Representative said Pix requirements force American providers to promote a Brazilian competitor without compensation and called the policies “unfair and discriminatory.”
• Senator Flavio Bolsonaro proposed barring Pix from linking to non-Western cross-border settlement systems; President Lula accused him of trying to surrender the system to foreign interests.
• The US administration has considered imposing 25% tariffs on selected Brazilian exports, citing what it describes as discriminatory trade practices tied to Pix.