To buy a fresh coconut on the beach or pay your rent, the free electronic PIX system has become the dominant payment method in Brazil, with a simple smartphone. Donald Trump doesn’t like that at all.
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Three months before the presidential election in Latin America’s largest economy, PIX is at the heart of a new row between the US administration and the government of left-wing Brazilian President Luiz Inacio Lula da Silva.
Washington accuses Brazil of “unfair competition”, judging that American credit card companies are at a disadvantage.
“We don’t need to pay fees to use PIX, whereas with credit cards you have to pay annual fees, bank fees, fees for this and that,” Paulo Ricardo Conceiçao told AFP, sitting at his drinks counter on Copacabana beach in Rio de Janeiro.
A man pays for a purchase on Copacabana Beach using Brazil’s Pix instant payment system, in Rio de Janeiro, July 9, 2026.
AFP
Because of PIX and other trade practices it considers “discriminatory,” the United States Trade Representative (USTR) is considering imposing 25% tariffs on certain Brazilian exports. Decision expected in the coming days.
Why is PIX important?
Launched in 2020, PIX is the country’s most popular payment method, accounting for 54% of transactions, according to the Central Bank of Brazil (BCB), which created it.
It “has managed to successfully reach millions of Brazilians who were previously excluded from the traditional banking system,” underlined the head of Brazilian diplomacy, Mauro Vieira, in a letter addressed to the USTR.
A woman pays for a purchase on Copacabana Beach using Brazil’s Pix instant payment system, in Rio de Janeiro, July 9, 2026.
AFP
The mechanism is used by 80% of the 212 million Brazilians.
“Before, you had to carry around with cash and lots of things in your wallet. Now you just have to take your cell phone and do a PIX, it’s really made everyone’s life easier,” Ingrid Ferreira, a 32-year-old civil servant, told Brasilia.
What is the United States denouncing?
Washington maintains that the Brazilian central bank, as owner and regulator of the PIX system, finds itself in a conflict of interest and puts American companies at a disadvantage.
The Trump administration is complaining about BCB’s requirements that banks integrate PIX on the home page of their applications and not charge users fees.
This “forces American providers to promote their Brazilian competitor”, it is “unfair”, says the USTR.
A street vendor receives payment through Brazil’s Pix instant payment system on Copacabana Beach, Rio de Janeiro, July 9, 2026.
AFP
According to a Brazilian government source, the discontent in the United States is linked to the fate of credit card companies, whose share has fallen from 23% to 15% of transactions since 2020.
“A large part of the Brazilian population works in informal services. They are small entrepreneurs and they were very dependent on these big credit card operators, paying fees,” Professor Marco Sanfins of the Fluminense Federal University told AFP.
How does Brazil defend itself?
Brasilia rejects these accusations and claims that PIX has expanded “the digital payments ecosystem by benefiting US-linked companies” like Google.
The total number of card users in Brazil has increased since 2020, according to BCB.
According to the South American giant, Washington also sees in PIX and similar systems, which exist in Kenya, Nigeria, India and Colombia, a potential threat to the international supremacy of the dollar.
Why is this politically sensitive?
In October, Lula will face at the polls Flavio Bolsonaro, son and political heir of former far-right president Jair Bolsonaro (2019-2022), sentenced in 2025 to 27 years in prison for attempted coup d’état.
Donald Trump imposed customs duties on Brazil at the time, in retaliation for a supposed “witch hunt” against his ally. They were then largely lifted.
Senator Flavio Bolsonaro, son of former Brazilian President Jair Bolsonaro, leaves the Federal Police headquarters where Bolsonaro is detained, in Brasilia, November 25, 2025.
AFP
Flavio Bolsonaro is now trying to distance himself from the American offensive against a payment method favored by Brazilians. According to him, a new surcharge would favor Lula’s campaign.
“PIX is good for Brazil and, as incredible as it may seem, it is also good for the United States,” he assured after a recent intervention before the USTR in Washington.
