Ahead of critical elections in Brazil, tensions between Washington and Brasilia have intensified as former US President Donald Trump threatens to impose a 25% tariff on Brazilian imports. This protectionist measure is ostensibly aimed at countering what Trump sees as unfair commercial practices by the South American nation, which he claims are hindering US technology firms.
The dispute centres around a landmark decision made in June 2025 by Brazil's Supreme Court, holding social media platforms liable for certain user-generated content. This ruling has led to major tech companies such as Elon Musk's X and Mark Zuckerberg's Meta removing hate speech and anti-democratic material from their platforms, sparking Trump's criticism that the removals amount to censorship of "political" content.
Complicating matters is Flávio Bolsonaro's intervention before the US International Trade Commission, where he urged Washington to delay any tariff imposition until after Brazil's October presidential election. His appeal implies that a potential future government led by him would be more receptive to US interests than President Luiz Inácio "Lula" da Silva's administration.
The Brazilian government, under Lula's leadership, is actively promoting policies aimed at bolstering its digital sovereignty. Notably, the country has developed Pix, an advanced public payments system that allows instant money transfers between individuals, businesses, and government entities. With transaction volumes reaching a staggering $6.7 trillion in 2025, Pix is designed to reduce reliance on foreign-controlled payment networks, such as Visa and Mastercard.
Economists like Andres Arauz argue that payment systems are deeply intertwined with data collection. By routing transactions through US-linked networks, countries risk creating backdoors for surveillance and external pressure. From this perspective, the proposed tariffs are less about traditional protectionism and more about undermining Brazil's efforts to assert control over its digital infrastructure. A decision from the White House on the tariff proposal is expected imminently, with far-reaching implications for bilateral relations and regional dynamics.