Trump Imposes 25% Section 301 Tariff Targeting Brazil’s Pix Instant-Payment System

Tariffs Hit Pix

The United States will impose a 25% Section 301 tariff on most Brazilian goods starting July 22, targeting what it calls unfair advantages created by Brazil’s state-run Pix instant-payment system.

CoinDesk reports that Washington views Brazil’s promotion of non-dollar payment channels, including Pix and the growth of stablecoins, as a potential threat to dollar-based trade, even as dollar-linked stablecoins account for about 90% of Brazil’s crypto transactions.

France 24 says the new 25% levy falls on about 3,000 Brazilian items and is imposed under Section 301 of the 1974 Trade Act, after a year-long investigation by the Office of the United States Trade Representative (USTR).

France 24 adds that the exemptions list was broader than expected, with Trump exempting about 2,100 products such as meat, some fish, coffee, oil, rare earths, oranges and juice, aircraft and their components, and even works of art.

CoinDesk states that the U.S. Trade Representative argues Pix disadvantages American payment firms like Visa and Mastercard, citing a rule requiring financial institutions with more than 500,000 active accounts to offer Pix to individuals free of charge.

Reporting for this sectionCoinDeskFrance 24

Brazilian Political Clash

Brazilian President Luiz Inácio Lula da Silva said, “Our sovereignty is not negotiable. No one will change our PIX,” as the tariff dispute centered on Pix and the electoral timing of the October presidential campaign.

teleSUR reports Lula added that Brazil does not rule out applying the Reciprocity Law, which would entail imposing those same tariffs on American products entering Brazil.

France 24 describes a clash of accusations between Lula and Flávio Bolsonaro, with Flávio writing, “Lula is no longer in a position to be the president of Brazil. We are on a plane without a pilot,” and urging the U.S. administration to delay the tariffs until after the elections.

France 24 also says the Brazilian Presidency accused the Bolsonaro family of actively collaborating in the narrative that led to the tariff hike and called them false patriots who planned and publicly defended actions against Brazil, driven by electoral objectives.

In the same dispute, CoinDesk says Pix is used by more than 90% of Brazilian adults and now handles more transactions in the country than credit and debit cards combined.

Reporting for this sectionteleSURFrance 24

Stablecoins and What’s Next

CoinDesk frames the tariff fight as part of a broader U.S. concern about efforts by Brazil and other BRICS countries to reduce reliance on dollar-based payment infrastructure, even as the U.S. dollar already circulates widely in Brazil’s digital economy via stablecoins. CoinDesk says dollar-linked stablecoins already account for roughly 90% of crypto transaction volume in Brazil, most of it used for payments and settlement, and adds that Brazil processes between $6 billion and $8 billion in crypto each month. CoinDesk reports that Brazil’s central bank moved to limit stablecoins’ role in regulated cross-border payments, with Resolution 561 effective October 1 set to bar payment firms from settling cross-border payments in stablecoins or other crypto.

France 24 says the Central Bank governor, Gabriel Galípolo, assured that the system will remain free and that the institution will continue to collaborate with other central banks. CoinDesk also includes a counterpoint from Rodrigo Caggiano, founder of Brazilian real-world asset monitoring platform RWA Monitor, who told CoinDesk, “In practice, they are complementary,” describing Pix as addressing domestic instant payments while stablecoins expand what is possible on blockchain networks.

Reporting for this sectionCoinDesk