BRASILIA — Brazilian President Luiz Inácio Lula da Silva has urged U.S. President Donald Trump to lift the 40% tariff imposed on Brazilian goods and to reverse restrictive measures taken against local authorities, Brazil’s government announced on Monday. During a 30-minute phone call earlier in the day, both leaders discussed trade issues and agreed to meet in person “soon,” according to the official statement. Described as friendly and constructive, the conversation marks a significant step toward easing recent tensions between the two governments.
Lula proposed that their meeting take place during the upcoming ASEAN Summit in Malaysia and also expressed his willingness to travel to Washington if necessary. The Brazilian government added that both presidents exchanged personal phone numbers to maintain a direct and open channel of communication. Brazilian Finance Minister Fernando Haddad told reporters in Brasília that the exchange was “positive,” noting that Vice President Geraldo Alckmin and Foreign Minister Mauro Vieira also joined the conversation. Markets in Brazil reacted cautiously optimistic to the news, as ongoing tariff disputes have strained trade flows and investor confidence.
The tariffs were first introduced at 10% but later increased to 40% on key exports, pushing total levies to 50%. The Trump administration claimed the measures were in response to what it viewed as political persecution of former Brazilian President Jair Bolsonaro, a close ally of Trump. Bolsonaro was sentenced to 27 years in prison for attempting to stage a coup following his defeat to Lula in the 2022 elections. In addition to raising tariffs, Washington sanctioned Brazilian Supreme Court Justice Alexandre de Moraes, who oversaw Bolsonaro’s case, under the Magnitsky Act, and revoked the U.S. visas of six senior Brazilian officials, including Solicitor-General Jorge Messias.
At the United Nations General Assembly last month, without directly naming Trump, Lula criticized the imposition of “unilateral and arbitrary measures” targeting Brazil’s democratic institutions and economy. Following a brief encounter between the two leaders in New York, Trump had remarked that he and Lula shared “excellent chemistry” and expressed interest in a future bilateral meeting.The potential thaw in relations could signal a turning point for Brazil–U.S. trade, with both sides hinting at a renewed willingness to cooperate after months of diplomatic strain.