Brazil's tariff rate has climbed to 18% after the latest US trade measures under the Trump administration, with dollar stablecoins now accounting for 90% of the country's cryptocurrency volume. The new US tariff on Brazilian goods sits at 17.7%, with a separate 25% levy set to take effect later in 2026. The move is reshaping how Brazilian traders and businesses move value across borders.
Why stablecoins are winning
Dollar-pegged tokens like USDT and USDC have become the default on-ramp for Brazilians looking to hedge against real depreciation and bypass traditional banking channels. With import costs rising and trade uncertainty mounting, stablecoins offer a direct link to the US dollar without leaving the crypto ecosystem. Local exchanges report that nine out of every ten reais flowing into crypto end up in a stablecoin.
The tariff escalation
The 18% rate is the result of compounding US actions. Washington first imposed a 10% baseline tariff on Brazilian steel and aluminum in early 2025, then added sector-specific duties that pushed the effective rate to 17.7% earlier this year. The additional 25% levy — tied to intellectual property disputes — is scheduled for implementation later in 2026, according to trade documents. Brazil's government has not announced retaliatory measures, but officials have signaled they're reviewing options.
What this means for crypto flows
The dominance of dollar stablecoins in Brazil isn't new — they've hovered around 70-80% of volume for the past two years — but the jump to 90% coincides directly with the tariff hikes. Brazilians are using stablecoins to settle international invoices, move capital out of the country, and store value outside the real. The central bank's digital currency, the Drex, has seen limited adoption by comparison, partly because it doesn't offer the same dollar exposure.
The 25% tariff deadline is the next flashpoint. If it goes through, the effective US tariff on Brazilian goods could surpass 40%, likely pushing even more volume into stablecoins. Brazilian crypto firms are already eyeing alternatives like euro- and gold-pegged tokens, but for now the dollar remains king. The real has weakened roughly 12% against the dollar this year, making the flight to stablecoins a rational — if politically uncomfortable — choice for traders.
