Overview
- Lula and Trump, who met Thursday at the White House, focused on stopping new U.S. tariffs, exploring a critical‑minerals framework, and expanding work against organized crime.
- Trump’s 50% tariffs from 2025 were mostly rolled back after court limits and policy shifts, yet a 10% surcharge still runs until July as Brazil fears fresh levies tied to a Section 301 probe into alleged unfair practices.
- Officials do not expect a minerals deal now, with Brazil insisting on domestic processing to create jobs and the U.S. pushing a price floor to counter China’s market power, even as USA Rare Earth moves ahead with a $2.8 billion buy of Serra Verde’s operations.
- Brazil plans deeper cooperation on money laundering and gun and drug trafficking after an April data‑sharing pact, while resisting U.S. moves to label gangs PCC and Comando Vermelho as terrorist groups due to risks for banks and sovereignty.
- Trade frictions extend beyond tariffs as USTR alleges widespread illegal timber exports and U.S. officials scrutinize Brazil’s free PIX payments system and its stance on a WTO e‑commerce moratorium, with Lula also seeking political gains before October’s vote.