Brazil has formally rejected a US threat to impose tariffs under Section 301 of the Trade Act, defending its Pix instant payment system against claims that it disadvantages American technology companies.
The filing, submitted to the US Trade Representative on July 1, marks a direct escalation in the transatlantic trade dispute over digital taxation and payment infrastructure.
This stance mirrors the European Commission’s recent rejection of President Donald Trump’s threat to levy tariffs of up to 100% on goods from countries maintaining such taxes.
According to The Rio Times, the Brazilian government’s response argues that Washington has failed to demonstrate that Pix harms US firms.
The filing challenges the premise of the trade probe, asserting that the domestic payment network operates independently of the digital services taxes that have drawn US ire.
This stance mirrors the European Commission’s recent rejection of President Donald Trump’s threat to levy tariffs of up to 100% on goods from countries maintaining such taxes.
The dispute centers on whether Brazil’s digital services tax and the structural advantages of Pix constitute unfair barriers to US tech giants.