Donald Trump Latest News: Earlier this month, US President decided to impose 25% tariffs on Brazil, re-igniting tensions. Now reports have emerged that Brazil’s innovative Pix Payment technology and unfair trade practices were the triggers behind Trump’s bold decision.
Donald Trump Latest News: Donald Trump Targeting Brazil With 25% Tariffs Over Pix Payment Technology?
Earlier this week, US President Donald Trump declared that he is imposing 25% tariffs on most goods & services from Brazil. Trump used Section 301 to invoke the tariffs, which will be effective from July 22 next week.
This marks the first time that the Donald Trump administration has used Section 301 to invoke tariffs on any country. Many political analysts are viewing this as a direct attack on incumbent Brazilian President Luiz Ignacio da Silva, who will contest in a general election later this year. Relations between both countries were warmer when now disgraced leader Jair Bolsonaro was in power.
What is Pix Payment Technology?
Launched in November 2020, Pix is an instant payment technology, created and managed by the Central Bank of Brazil. Taking less than a few seconds to transfer from one bank account to another, Pix allows for the real time settlement of transactions quickly and smoothly. Today, the state run payment technology is used by over 90% of Brazilian adults and handles more transactions than credit cards and debit cards combined. According to the Central Bank of Brazil, it is completely free for users.
Donald Trump Latest News: US Government’s Claim About Unfair Trade Practices
At the time of the tariff announcement, Ambassador Jamie Greerson stated “Today’s action is necessary to address these unfair trade practices to ensure American workers and companies can operate on a level playing field”.
Many trade experts in the US believe that Pix has created a major market disadvantage by aggressively favouring Pix, its state-run instant-payment system, over American electronic payment networks like Visa and Mastercard.
And this is not the first time both countries have clashed over Brazil’s trade practices. In September 2024, Trump publicly accused Brazil of unfair trade practices and said he had directed the U.S. Trade Representative Jamieson Greer to initiate an investigation under Section 301 of the Trade Act of 1974. He slammed the current administration for allegedly orchestrating a witch hunt against now imprisoned Jair Bolsonaro.
Donald Trump Latest News: Brazilian Authorities Response
Brazilian President Luiz Inácio Lula da Silva’s office vehemently denied U.S. allegations of unfair trade practices. It said 76% of imports from the U.S. entered Brazil duty-free in 2025, and that the average tariff effectively applied to U.S. products was only 3.1%.
The office shared that it has taken steps to impose reciprocal tariffs, along with other trade-related countermeasures, through its own law. And Brazilian Foreign Minister Mauro Vieira accused the Trump administration of pressuring the South American nation to give American companies exclusive access to some sectors of its economy. The US tariffs and Brazil’s countermeasures will likely worsen trade relations between both countries.
