Trump threatens Pix and expands commercial attack on Brazil

The United States government opened an investigation against Brazil on Tuesday (15) that includes, among its allegations, the accusation that the PIX – free payment system used by millions of Brazilians – represents an unfair commercial practice by the state.

The measure was directly determined by Donald Trump, who had already announced a 50% tariff over Brazilian exports as a reprisal to the process that former Precisor Jair Bolsonaro responds to the STF for coup attempt.

Now, the offensive extends beyond taxes and even affects popular public policies such as Pix, as well as areas such as digital commerce, intellectual property, ethanol and the environment.

The new attacking front was made official by the US Commercial Representative Office (USTR) based on Section 301 of the 1974 Commerce Law – the same instrument used by Trump to justify the tariff war against China in 2018.

In a statement, representative Jamieson Greer stated that the measure responds to “Brazil attacks on American social media companies and other unfair business practices.”

In practice, the measure paves the way for new commercial sanctions – such as quotas, additional tariffs, and regulatory restrictions – which may be unilaterally imposed by the US.

The process is based on a report that has accusations without evidence against various Brazilian policies, including citing 25 de Março Street, deforestation and patent granting, as well as the use of bilateral agreements with India and Mexico.

Among the most contested points is criticism of the Central Bank for developing and popularizing the PIX, regarded by the report as an obstacle to the advancement of US private companies in the electronic payment sector.

The episode is treated as evidence that Trump is willing to retaliate even popular and accessible achievements of Brazilian society.

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Pix, STF and censorship: accusations reach national sovereignty

The inclusion of Pix as “unfair practice” was one of the mentions that drawn the most attention in the document. The free system, created by the Central Bank to expand financial inclusion, is accused of restricting the performance of private platforms such as WhatsApp Pay of the American Meta.

The criticism is based on the fact that the launch of the service service was temporarily suspended in 2020 by decision of BC and Cade.

The report also criticizes decisions of the Federal Supreme Court (STF) that hold social networks for illegal content – especially those related to scammer speeches.

For the US government, these decisions configure “secret orders” that threaten freedom of expression and endanger American companies.

There is also an insinuation that executives from American companies would have been threatened in prison in Brazil, without the report presenting evidence or names. Criticism ignores that such decisions were made in legitimate and public legal proceedings linked to the containment of attacks on democracy.

The tone of the report reflects the growing politicization of US trade policy under Trump, with accusations that border on interference with internal decisions of the Brazilian judiciary.

Retaliation extends to ethanol, popular trade and agreements

Another point of the offensive is the criticism of trade agreements signed by Brazil with countries such as Mexico and India, which would have generated “unfair preferred tariffs” against US products.

The practice, however, is authorized by the World Trade Organization (WTO) and adopted by several countries in their bilateral strategies.

The ethanol sector also entered the target. The report claims that Brazil imposed rates up to 18% on US product, which would have caused a drastic drop in US exports-from US $ 761 million in 2018 to US $ 53 million by 2023. The data, however, ignores currency variation, market factors and the fact that Brazil had already zeroed these tariffs previously.

Surprisingly, the traditional 25 de Março Street in São Paulo is also cited as an example of a failure to combat piracy. USTR states that the site remains a counterfeit trade center, without Brazil having sufficiently deterrent sanctions – even recognizing operations and seizures carried out by the Brazilian authorities.

The inclusion of March 25 in the report exposes the degree of detail – and selectivity – of the American offensive, which seeks to criminalize popular practices of commerce and promote a narrative of state lack of control in Brazil.

Attempted political coercion puts case in the diplomatic sphere

Trump’s offensive offensive has explicit political motivation. In previous statements, the US President associated commercial retaliation for the “persecution” against his personal ally, suggesting that Brazil would be violating democratic principles by bringing the former president to court. The goal, according to analysts, is to pressure Brazilian institutions and weaken Lula’s government.

The use of section 301 in politicized contexts had already been criticized during the trade war against China, but the application against Brazil is considered even more fragile. The report lacks robust technical foundation and brings generic legal arguments, which makes room for contestation in international forums.

The Brazilian government, in turn, has already indicated that it could react based on the reciprocity law approved by Congress, adopting proportional measures against the US. Itamaraty is also expected to trigger the WTO and other multilateral mechanisms in view of what is seen as an attempt for commercial and diplomatic coercion.