Yue Yunxia: Why did the US tariff stick swing to "Alipay of Brazil"?

On July 22nd, the United States once again wielded its tariff stick and imposed a 25% tariff on over 4000 Brazilian goods. Previously, the two countries had been negotiating for months, but there were significant differences in core areas such as Brazil's instant electronic payment system (Pix), which ultimately failed to reach a consensus. The US believes that Pix "damages the competitiveness of American companies"; The Pakistani side calls it a 'national achievement' and will never give up. Pix has become a focal point of economic and trade friction between Pakistan and the United States, and the butterfly effect generated by this round of game may continue to spread.

Pix is often compared to the official Brazilian version of "Alipay". It is a payment software that can be delivered to the account in real time and used by individuals free of charge by the Central Bank of Brazil in 2020. According to statistics, as of June 2026, Pix's registered users in Brazil have reached 184 million, accounting for 86% of the total population; The monthly transaction volume exceeds 3.6 trillion reals (approximately 4.7 trillion yuan), which is more than 8 times the total amount of credit and debit cards. Some analysts believe that this system has made the Brazilian financial system more independent, personal payment transactions more convenient, and the frequency of credit and debit card usage has also significantly decreased. Therefore, the US believes that the profit fundamentals of the two traditional payment giants, Mastercard and Visa, have been impacted.

The strong support from the Brazilian government, coupled with Pix's efficiency, convenience, and low cost, has prompted it to rapidly expand into cross-border scenarios. In the Latin American region, Brazil, as a core member of the Southern Common Market, has used Pix as a substitute for US dollar settlement in its trade dealings with neighboring countries such as Argentina and Uruguay, reducing exchange rate risks and transaction fees. Outside Latin America, the Central Bank of Brazil has reached cooperation with financial institutions in Germany, Canada, South Africa, Türkiye and other countries to share system technology and operating experience.

In recent years, the speed of building free payment platforms in various countries has significantly accelerated. Countries in Africa, Southeast Asia, Europe and other regions have already started building their own payment infrastructure. The monthly transaction volume of the UPI payment system launched by the Indian National Payment Corporation has exceeded 20 billion, and more than 30 countries in Africa have launched the real-time payment system PAPSS. Southeast Asian countries have achieved cross-border payment interconnection, and Europe is also accelerating the promotion of digital euros and local alternative solutions. These actions are an inevitable choice for countries under financial security anxiety. The United States has long monopolized the two global payment lifelines of SWIFT and CHIPS, often weaponizing the financial system and imposing sanctions and long arm jurisdiction on other countries. For emerging markets, autonomous payments can help to break free from excessive dependence on US dollar clearing channels and Western payment networks, and reduce the risks that may arise from relying on a single payment channel.

Ultimately, the debate between Brazil and the United States over payment systems is not simply a technical or market dispute, but a rules and security dispute. In the era of digital economy, payment is the fundamental hub of all commercial activities, and payment data is the core data asset that reflects a country's economic operation and consumption behavior. The United States' definition of a country's inclusive financial system as "unfair competition" is itself an arrogant disregard for the development rights of other countries. The only guarantee for financial security is independent and controllable, and the technological revolution has given latecomer countries the possibility of "changing lanes and overtaking". The establishment of Brazil's own payment system and local payment standards, such as Pix, can also drive the development of the country's fintech industry, forming a complete ecosystem from the bottom system to the top application, and avoiding the local market from being harvested by external payment giants.

It is worth mentioning that there is also a divergence of views within Western countries regarding payment system issues. At the end of June, the Economic and Monetary Affairs Committee of the European Parliament approved the long-awaited plan for a digital euro; Recently, countries such as Ireland and Montenegro have launched local instant payment systems. Worldwide, locally built instant payment systems are becoming an important force in promoting inclusive finance and cross-border connectivity.

The US tariff baton waved to "Brazilian Alipay", which touched the international community's renewed concern about the sovereignty of digital payment. A multipolar payment network may accelerate the decline of the US financial monopoly. Under the heavy pressure of tariffs, Brazil actively strengthens financial cooperation with partners such as BRICS and ASEAN, attempting to build a clearing network independent of the US dollar and alleviate potential financial isolation risks. Following Brazil, the Office of the United States Trade Representative has launched nearly 80 investigations under Section 301, which means that the vast majority of US trading partners are also inevitably facing tariff threats, including "digital trade and electronic payment services". Brazil's measures and Pix's breakthrough development undoubtedly provide a way of thinking. (The author is the Deputy Director and Researcher of the Institute of Latin American Studies, Chinese Academy of Social Sciences)