US Imposes 25% Tariff on Brazilian Payment System

The United States has initiated a trade conflict by imposing a 25% tariff on Brazilian products, focusing on payment infrastructure. The Trump administration announced that tariffs would apply to most Brazilian imports starting July 22. This marks the first application of the 'Section 301' trade law, targeting the payment system of a specific country. The U.S. Trade Representative identified Brazil's central bank's instant payment system, Pix, as a concern. Pix is a payment infrastructure used by over 90% of Brazil's adult population, surpassing the usage of credit and debit cards. Since its launch in November 2020, it has been utilized by more than 170 million people, and it is expected to handle 42.9 billion transactions by the second half of 2025. The U.S. has classified Pix as a non-tariff barrier, emphasizing that it is a measure to ensure fair competition. This conflict is linked to tensions between the dollar-centric financial order and BRICS countries, with Brazil prioritizing the establishment of a payment system that reduces dollar dependence as it assumes the BRICS presidency in 2025. The Brazilian central bank plans to implement a resolution banning overseas payments using stablecoins. Pix is under pressure from both the U.S. and Brazil and may become a benchmark for new trade disputes surrounding digital payment infrastructure in the future.

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