JP Morgan Chase reported record quarterly profits that surpassed even the pandemic-era boom, driven by exceptional performance from its traders and gains from its stake in Visa cards.

Net income increased 41% to $21.2 billion, including $4.6 billion related to its shares in the American payment systems company. Excluding this gain, net income was $16.9 billion, compared to the forecast of $16.5 billion.

The announcement was made on Tuesday, July 14, along with the release of results from other major American banks – including Goldman Sachs , Citigroup , Bank of America , and Wells Fargo , all of which reported significant increases in second-quarter profits, driven by growth in their equity trading operations.

JP Morgan's service fees totaled $3.3 billion, a 30% increase year-over-year, driven by $75 million received for work on SpaceX 's initial public offering (IPO) in June. Trading revenues grew 35% to $12.1 billion, with an 86% increase in the equities segment.

The 21.6% contribution of Visa cards to JP Morgan's record increase in quarterly net profit is amplifying Brazilian government fears about the investigation conducted by the USTR (the US trade authority), which could result in tariffs of up to 37.5% on Brazilian products, with Pix being one of the points of criticism.

The free electronic payment system, created by the Central Bank, has come under fire from Trump's tariff hikes because the United States government accuses Brazil of adopting "unjustifiable" and "discriminatory" trade practices in the digital payments sector.

According to the USTR investigation report, Brazil is favoring Pix in a way that "burdens or restricts" American companies operating in electronic payment services, such as Visa. The US government is expected to announce a decision by Wednesday, July 15th.

The accusation regarding Pix is part of a Section 301 investigation, which allows the US to retaliate against countries that adopt practices considered unfair. The USTR has opened investigations against 86 countries, including Brazil.

There are two ongoing investigations. In the first, the White House proposes an additional 25% tariff for anti-competitive practices. In another report, the Trump administration indicates an additional 12.5% charge, based on an investigation into alleged forced labor practices.

In practice, if the tax is levied, it should apply to 25% of the value exported to the United States, due to the list of exceptions.

In the specific case of Brazil, there is also a political component to the US threat to impose tariffs on Brazilian products. The tariff increase has become ammunition in the dispute between Trump and President Luiz Inácio Lula da Silva, and the issue is being used by Trump's allies, such as opposition candidate Flávio Bolsonaro, to pressure the Brazilian government.

The narrative attempts to transform a complex regulatory dispute into political ammunition, reinforcing the idea that Brazil is isolated and vulnerable in the face of Washington. By including Pix in its accusations, the USTR broadens the symbolic scope of the measure: it's not just about soybeans, steel, or meat, but about one of the greatest success stories of Brazilian public policy in recent years.

In an interview with NeoFeed , diplomat Marcos Troyjo — former president of the New Development Bank, the BRICS bank, during the Bolsonaro administration — stressed that Brazil needs to "avoid turning the episode into an ideological war," noting that trade disputes of this type are usually resolved through technical negotiation and pragmatism.

According to him, the Brazilian government should "defend Pix without falling into the trap of politicizing the debate," because that would only strengthen Trump's narrative that Brazil is distancing itself from the US.

High profits

Following the announcement of its results, JP Morgan Chase CEO Jamie Dimon stated in a press release that, although the US economy "has demonstrated remarkable resilience this year, with increased business investment and hiring," there are obstacles in the way.

“Several risks are shifting beneath the surface like tectonic plates, including geopolitical tensions and wars, persistent inflation, large global fiscal deficits, and high asset prices,” Dimon said, adding that these risks “may remain manageable, but they could also cause significant disruption when they shift or collide.”

Goldman Sachs also released second-quarter results on Tuesday, the 14th, that were much better than expected, driven by significant gains in equity and debt underwriting, most notably SpaceX's $86 billion IPO at the end of June.

The bank reported earnings of $20.98 per share for the three months ended in June, a 92% increase over the same period last year and well above Wall Street's forecast of $14.38 per share. Group revenue grew 26%.

Citigroup, for its part, announced that profits increased 45% to US$5.8 billion, with the investment bank contributing to revenues reaching their highest quarterly levels in a decade.

Bank of America was also boosted by an exceptional quarter in deals and mergers and acquisitions, with profits up 27% to a record $9.1 billion. Revenue from equity trading grew 70% to $3.6 billion.

Wells Fargo reported a 17% increase in profits, reaching US$6.4 billion, exceeding forecasts.