The United States has opened a formal investigation into Brazil’s digital trade practices, placing Brazil’s fast-growing Pix payment system at the center of growing trade and geopolitical tensions.
U.S. Trade Representative Jamieson Greer announced the probe on Tuesday, stating that the review will assess whether Brazil’s policies are disadvantaging American companies. Greer pointed to potential “tariff and non-tariff barriers,” and claimed Brazil is giving favorable treatment to some trading partners while sidelining U.S. businesses.
Pix, launched by Brazil’s Central Bank in 2020, has revolutionized payments in the country. It enables real-time, 24/7 money transfers without the fees of traditional financial systems. With over 150 million users and acceptance at more than 60 million businesses, Pix has rapidly replaced private-sector options, including American companies like Visa, Mastercard, and U.S. fintech firms.
American officials argue that Brazil’s promotion of Pix — combined with restrictions on foreign platforms — is creating an uneven playing field. The probe will also examine whether U.S. technology firms are being penalized for refusing to comply with Brazilian political content regulations.
A key flashpoint occurred in August 2024, when Brazil’s Supreme Federal Court ordered the suspension of the social media platform X after its owner, Elon Musk, failed to appoint a legal representative in the country. U.S. officials see such actions as retaliatory and protectionist.
The investigation follows rising diplomatic strain. On July 7, former President Donald Trump urged Brazil to end the prosecution of former leader Jair Bolsonaro, calling it politically motivated. Shortly after, Trump threatened Brazil with a 50% tariff on exports to the U.S. starting August 1, citing unfair trade practices.
Beyond trade, the U.S. views Pix and Brazil’s digital infrastructure as part of a broader BRICS-led move to challenge U.S. financial dominance. The BRICS bloc, which includes Russia, India, China, and South Africa, launched “BRICS Pay” in 2024 to bypass the SWIFT network and promote local currency use in global trade.
The outcome of the probe could have major implications for digital finance, U.S.-Brazil relations, and the future of cross-border payment systems.
