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Lula Reopens Direct Talks With Trump Over U.S. Tariffs and Terror Designation

The call cleared a path for technical teams to meet even though U.S. tariff surcharges and the State Department’s terrorism label remain in effect.

Overview

  • The phone call, which took place on Friday, lasted about 1 hour and 20 minutes and was described by Brazil’s presidential office as 'amistoso e cordial'.
  • Lula told President Trump the U.S. allegations that underlie the tariffs are unfounded and rejected classifying Brazilian criminal factions as terrorist organizations.
  • Trump agreed teams from both governments should reconvene soon and said he would mobilize senior officials to follow up on cooperation and security matters.
  • U.S. measures imposed in July include a 25% Section 301 surcharge and a 12.5% forced-labor-related duty that can combine to 37.5% on some products, and those levies were not lifted during the call.
  • Brazil has opened a formal reciprocity process under its reciprocity law and kept WTO consultations active, meaning negotiations now run in parallel with legal and diplomatic options that could affect exporters and consumers.