Latam Insights: US Congress Scrutinizes El Salvador's Bitcoin Usage; Brazil Faces 50% Tariffs

2025-07-13 23:31:35

Abstract generation in progress

Welcome to Latam Insights, a compilation of the most relevant crypto news from Latin America over the past week. In this week’s edition, the U.S. Congress introduces a sanctions bill against El Salvador, Trump slaps 50% tariffs on Brazil, and reports indicate that Argentina scored a zero-tariff agreement with the U.S.

US Senate Introduces Bill to Enact Sanctions on El Salvador’s Bitcoin Usage in Human Rights Violations

El Salvador’s government and its adoption of bitcoin are again in the spotlight. In June, Senators Chris Van Hollen, Tim Kaine, and Alex Padilla introduced the “El Salvador Accountability Act of 2025” to the U.S. Senate, a bill focused on enacting sanctions on the executive branch of the country involved in corruption acts to “ship people to El Salvador in violation of their constitutional rights.”

The bill proposes to enact sanctions on President Nayib Bukele, some of the ministers of his administration, and any foreign people that has engaged in “gross violations of internationally recognized human rights,” or have accepted “taxpayer dollars, to deprive individuals residing in the United States of their rights.”

The bill hints at the involvement of bitcoin funds in these exchanges, probing the utilization of these resources for these alleged human rights violations.

Trump Imposes 50% Tariff on Brazilian Imports

The Trump Administration has announced a 50% tariff on all Brazilian imports, a move that has sparked widespread rejection from the authorities of the South American nation.

President Trump posted a letter to Brazil’s President Luiz Inácio Lula da Silva on Truth Social, noting that this new tariff was justified by the alleged unfair treatment of former President Jair Bolsonaro in courts and the censorship orders directed to U.S.-based social media platforms.

In addition, Trump stated that the two countries have had years to discuss their trade relationship and concluded that the U.S. must “move away” from the “longstanding and very unfair” relationship created by Brazil’s tariff policies.

Argentina Secures Zero-Tariff Agreement With the US

Argentina has secured a highly beneficial agreement with the U.S. government, allowing most of its exports to enter the country without incurring any levies. According to local media, which cites officials from the Milei administration as sources, the general terms of the alleged agreement have reportedly already been agreed upon by both parties.

The Argentine government has reportedly prepared a list of 100 products that will enter U.S. soil without incurring taxes. The reported agreement guarantees zero tariffs for up to 80% of Argentine exports to the U.S., excluding raw materials such as steel and aluminum.