Brazil Steps Up Technical Push to Avert Possible U.S. Section 301 Tariffs

Overview

• On Monday Finance Minister Dario Durigan said Brazil has intensified technical negotiations and submitted detailed arguments to U.S. trade authorities in the Section 301 probe.
• Durigan warned the U.S. investigation is near its end and that Washington could announce unilateral measures before bilateral talks conclude.
• He said U.S. moves to label the Comando Vermelho and PCC as terrorist groups could open the door to Treasury sanctions that would raise compliance costs for banks.
• Durigan warned higher bank costs and targeted sanctions could force some institutions to stop offering Pix, Brazil’s instant-payments system, disrupting everyday payments for consumers and businesses.
• The government is using improved deforestation data and evidence of Pix’s economic role to defend exporters and plans direct contact with U.S. officials to seek mitigation.