Brazilian President Luiz Inácio Lula da Silva and U.S. President Donald Trump spoke by phone on Friday to discuss trade tariffs recently applied to Brazilian goods. According to a statement from the Brazilian government, President Trump suggested that officials from both nations meet as soon as possible to address the dispute, while President Lula emphasized that negotiations are the primary method for resolution.
The discussion follows the U.S. government's implementation of 25% tariffs on specific Brazilian products last month, citing unfair trade practices. Additionally, the U.S. imposed 12.5% tariffs on goods from dozens of countries, including Brazil, due to allegations of insufficient enforcement of forced labor bans. Brazil responded earlier this month by initiating a formal process for consultations with U.S. trade authorities, which may lead to reciprocal trade measures.
During the call, President Lula stated that the tariffs would negatively impact both economies. He dismissed the justifications provided by Washington—which include concerns over deforestation, intellectual property, ethanol, and the Pix instant payment system—as unfounded. Following the presidential call, U.S. Trade Representative Jamieson Greer contacted Brazilian Minister Marcio Elias Rosa to begin scheduling talks.
The negotiations also involve significant regulatory and legal designations. The U.S. previously designated two Brazilian criminal gangs as terrorist organizations in May, a label President Lula disputed during the call, arguing that criminal groups should not be equated with terrorists. Furthermore, the U.S. has cited Brazil's Pix instant payment system and environmental policies as factors in trade friction. Changes in these areas could affect how Brazilians conduct financial transactions and how the country manages its natural resources.
While both sides have agreed to resume talks, a Brazilian official stated that no changes to the tariff structure are expected before Brazil's elections in October. The official described the tone of the call as "friendly," but the outcome remains dependent on upcoming meetings between trade representatives. The Brazilian government is expected to announce a specific date for these negotiations on Monday.