The US has officially begun an examination of Brazil’s digital trade practices, with a primary focus on Pix, a state-run instant payment system that has swiftly ousted private sector competitors from the market. The investigation was announced on Tuesday by US Trade Representative Jamieson Greer.
The aim of the probe is to determine if the digital and trade policies in Brazil are imposing undue disadvantages on American firms. Greer highlighted that the investigation intends to scrutinize Brazil’s “tariff and non-tariff barriers,” suggesting that the country provides preferential treatment to certain trade partners while leaving US exporters at a disadvantage. The investigation will also delve into Brazil’s alleged penalization of US tech companies that do not adhere to censorship of political speech.
In 2024, there was a nationwide ban on social media platform X in Brazil after Elon Musk declined to assign a legal representative in the country. This order was issued by Brazil’s Supreme Federal Court in August 2024.
This probe signals the latest surge in tension between the two nations. Former US President Trump expressed his dissent on social media on July 7, urging Brazilian authorities to halt the prosecution of ex-President Jair Bolsonaro, which he described as a “witch hunt.” Shortly after, Trump threatened a new investigation in a letter addressed to Brazilian President Luiz Inácio Lula da Silva, coupled with a 50% tariff on Brazilian imports from August 1.
Pix, introduced in 2020 by the Central Bank of Brazil, is an instant payment system that operates round the clock, enabling people to send and receive money instantly at negligible or no costs. Pix has reshaped the Brazilian digital economy, with over 150 million users and more than 60 million businesses employing it. The US probe intends to uncover if Brazil has been unfairly promoting its local payment system over established American alternatives like Mastercard, Visa, and other US fintech companies.
While Pix operates only within Brazil, its influence is part of a larger shift that has raised concerns among US officials. Crypto-fintech platforms like Truther enable global users to send stablecoins and settle instantly into bank accounts via Pix, bypassing traditional financial systems such as SWIFT, PayPal, and US remittance services like Western Union. This transition has significant implications for global finance and domestic payments.
Furthermore, Brazil’s role in the BRICS economic bloc — with Russia, India, China, and South Africa — is part of a collective effort to lessen reliance on the US dollar and Western financial infrastructure. In 2024, the bloc adopted “BRICS Pay,” a cross-border payments platform designed to facilitate local-currency transactions and circumvent SWIFT. This move has reportedly ruffled feathers at the US end.
