At the heart of the U.S. tariff threat against Brazil is Pix, the government‑run instant payment system that has become a daily lifeline for millions across the country. Launched in late 2020, Pix is free for consumers and cheap for businesses, linking bank accounts directly via mobile apps and bypassing debit or credit cards. The Central Bank says it has brought 70mn people into the financial system and now serves over 170mn users, accounting for more than half of all transactions in the second half of 2025.

The service’s popularity, however, has drawn U.S. scrutiny. A Trade Representative investigation last month accused Brazil of giving Pix preferential treatment that disadvantages American card networks Visa and Mastercard. The report labeled Pix’s policies "unfair and discriminatory" and raised concerns about the central bank’s dual role as operator and regulator.

While no action was taken against Pix itself, the controversy has become a political flashpoint. President Luiz Inácio Lula da Silva has defended the system, warning that it is a national achievement, while his opponent, Senator Flávio Bolsonaro, argues that Pix benefits U.S. companies and has defended the payment tool in Washington. The U.S. may act on the tariff deadline of July 15, but Brazil remains determined to keep Pix open and sovereign.