Lula and Trump Reopen Talks to Address U.S. Tariffs

Overview

• The two presidents held a cordial phone call on Friday that lasted about 80 minutes and reopened direct presidential contact between Brasília and Washington.
• U.S. trade officials contacted Brazil’s MDIC hours after the call and agreed to resume technical negotiations next week with an initial focus on expanding exemptions to the U.S. tariffs.
• Washington’s measures comprise a targeted 25% surtax and a broader 12.5% tariff applied under Section 301 over concerns including forced labor and deforestation.
• Lula framed the diplomatic opening at campaign events in Minas Gerais by saying Trump ‘recognized’ errors in the tariff rationale, proposing joint action against organized crime, and advancing a push to process critical minerals inside Brazil.
• Brazilian ministers caution that a full reversal or a broader, definitive trade agreement will take longer and could wait until after the election while Brasília continues a reciprocal tariff process in the short term.