In July, the Office of the U.S. Trade Representative (USTR) opened an inquiry into Brazil’s instant payment system, PIX. The U.S. alleges that the system imposes unfair competition on American credit card operators, such as Visa and MasterCard, by offering a zero-cost alternative to traditional transaction fees. In response, the USTR recently floated the possibility of imposing 25% tariffs on Brazilian products.
Launched in 2020 by the Central Bank of Brazil, PIX has rapidly become the backbone of the country’s financial ecosystem. It is utilized by 175 million Brazilians and processes roughly R$ 3.5 trillion ($660 billion USD) in monthly transactions.
A recent survey conducted by Ipsos-Ipec captured the Brazilian public’s reaction to the U.S. tariff proposal. When asked about the U.S. demand to alter the payment system, 73% of respondents stated that the Brazilian government should keep PIX exactly as it is and reject U.S. pressure. Only 19% believed the government should make minor adjustments to avoid trade conflicts, while 9% did not know or declined to answer.
The survey also highlighted the system’s massive domestic popularity: 92% of Brazilians approve of PIX, and 82% report using it regularly.
| Response to US Tariff Pressure | Percentage |
|---|---|
| Keep PIX exactly as it is | 73% |
| Make minor adjustments | 19% |
| Don't know / No response | 9% |
Data provided by Ipsos-Ipec Survey, 2026.
| PIX Domestic Metric | Percentage |
|---|---|
| Public Approval | 92% |
| Regular Active Usage | 82% |
Data provided by Ipsos-Ipec Survey, 2026.
| Payment Method (Q1 2026) | Transaction Volume (BRL) | Transaction Volume (USD) |
|---|---|---|
| PIX | R$ 9.5 Trillion | $1.8 Trillion |
| Traditional Cards (Credit/Debit) | R$ 1.1 Trillion | $215 Billion |
Data compiled from the Central Bank of Brazil (BCB) and the Brazilian Association of Credit Card and Service Companies (Abecs), Q1 2026.
Flávio Bolsonaro Backs U.S. Trade Demands Amid Domestic Pressure
Despite the widespread domestic approval of PIX, the U.S. position has found sympathy from Senator Flávio Bolsonaro, son of former President Jair Bolsonaro and a current presidential candidate. Flávio recently positioned himself in favor of broader U.S. trade policies and successfully lobbied the U.S. to designate the Brazilian criminal syndicates PCC (Primeiro Comando da Capital) and CV (Comando Vermelho) as terrorist organizations.
The Senator has increasingly aligned himself with the Trump administration and figures such as Marco Rubio and Steve Bannon. This pivot follows recent domestic political headwinds for Flávio, including a scandal involving R$ 140 million ($27 million USD) linked to the recently arrested banker Daniel Vorcaro. The fallout from the scandal shook his political base and caused a 14-point drop in his election odds on prediction markets like Polymarket.
In a recent official letter responding to Flávio, U.S. Secretary of State Marco Rubio praised the Senator for his support of American policies regarding Brazil.
“As you note, United States Trade Representative Ambassador Jamieson Greer announced on June 1, 2026, his determination that certain acts, policies, and practices of Brazil are unreasonable or discriminatory and burden or restrict U.S. commerce,” Rubio wrote.
The letter continued:
“Ambassador Greer has made clear that we continue to have substantial differences in resolving the issues identified in this investigation. These relate to digital trade, electronic payment services (PIX), unfair preferential tariffs, anti-corruption enforcement, intellectual property protection, ethanol market access, and illegal deforestation.”
Rubio concluded the letter by highlighting the ongoing political relationship:
“The United States remains steadfast in its desire to see a prosperous, secure, and economically stable Brazil. We note your optimism regarding the upcoming October elections and your generous offer to place a transition team at our disposal should you be elected.”
USD → BRL
