America has launched a proper investigation into Brazil’s digital commerce practices, with a highlight on Pix, the nation’s immediate fee system that has quickly displaced private-sector rivals.
The probe, announced on Tuesday by US Commerce Consultant Jamieson Greer, will study whether or not Brazil’s digital and commerce insurance policies unfairly drawback US firms.
Greer mentioned the investigation will evaluation Brazil’s “tariff and non-tariff obstacles,” saying the nation provides preferential therapy to different commerce companions whereas disadvantaging US exporters.
One other focus is Brazil’s alleged penalization of American tech companies that refuse to censor political speech. In August 2024, Brazil’s Supreme Federal Court docket ordered a nationwide suspension of social media platform X, after Elon Musk refused to nominate a authorized consultant within the nation.
The investigation marks the newest escalation in tensions between the 2 international locations. On July 7, Trump took to social media to name on Brazilian authorities to drop the prosecution of former President Jair Bolsonaro, which he known as a “witch hunt.”
A number of days later, Trump threatened the probe in a letter to Brazilian President Luiz Inácio Lula da Silva, together with a 50% tariff on Brazilian imports beginning Aug. 1.
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Pix and Brazil’s monetary system
Launched in 2020 by Brazil’s Central Bank, Pix is a government-run immediate fee system that enables folks to ship and obtain cash immediately, 24/7, at no or very low price. In contrast to conventional fee methods, Pix lets customers bypass bank card networks totally, enabling direct transfers by cell apps, QR codes, or account keys.
With over 150 million customers and acceptance at greater than 60 million companies, Pix has rapidly turn out to be the spine of Brazil’s digital economy. In solely 5 years, it has turn out to be the default fee technique for every thing from avenue distributors to utility payments, reworking how cash strikes within the nation.
The US probe will examine whether or not Brazil has been favoring its native fee system over established American alternate options akin to Mastercard, Visa, and different US-based fintech firms.
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The intersection of home funds and international finance
Though Pix is just accessible domestically, it’s a part of a broader shift that has Trump and US officers involved.
Crypto-fintech bridges like Truther enable folks worldwide to ship stablecoins and settle immediately into financial institution accounts by way of Pix. This allows people and companies to bypass traditional finance rails such because the SWIFT system, PayPal and US remittance providers like Western Union.
For Trump, the priority goes past the Pix fee system. As a member of the BRICS financial bloc — alongside Russia, India, China and South Africa — Brazil is a part of a coordinated effort to cut back dependence on the US greenback and Western monetary infrastructure.
In 2024, leaders adopted “BRICS Pay,” a cross-border funds platform to bypass SWIFT and facilitate native‑forex transactions. At a latest BRICS Summit in Rio de Janeiro, the bloc mentioned making a joint reserve forex as a US greenback various, a transfer that reportedly drew the ire of the US president.
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