The decision, applied under Section 301 of the Trade Act of 1974, was taken by the USTR after a year-long investigation that found certain circumstances in Brazil, including Pix payments, were “unreasonable” and burdened or restricted “the commerce of American farmers, workers, innovators, and exporters.”
Key Takeaways
The U.S. imposed a 25% tariff on over $11 billion in Brazilian exports to counter unfair trade practices.The USTR claimed Brazil’s fee-free Pix system unfairly disadvantages American credit card operators.This unprecedented tariff marks the first penalty against a sovereign payment network to defend the dollar.The Trump Administration has finally taken action against Brazil, announcing a series of tariffs that would affect certain goods exported from Brazil to the United States.
These measures include preferential tariffs, anti-corruption interference, intellectual property protection, ethanol market access, illegal deforestation, and electronic payment services, specifically the Pix payment service.
The 25% punitive tariff fee would not affect the totality of Brazilian exports to the U.S., making exemptions for beef, coffee, and orange juice. Nonetheless, over $11 billion in exports would be affected.
Ambassador Jamieson Greer stressed that these actions were “necessary to address these unfair trade practices to ensure American workers and companies can compete on a level playing field.”
Nonetheless, President Luiz Inácio Lula da Silva has rejected these statements, stressing that there was no justification for these unilateral measures against Brazil.
The duty will apply to products that are entered for consumption or withdrawn from warehouse for consumption on or after 12:01 ET on July 22, 2026, per USTR’s federal notice.
