Overview

• The presidents briefly embraced at the U.N. General Assembly, described “chemistry,” and Trump said they agreed to meet next week.
• Washington’s 50% tariffs on many Brazilian exports and targeted sanctions tied to Jair Bolsonaro’s conviction remain in force.
• Lula welcomed dialogue on investment and commerce but said Brazil’s democracy and the work of its judges are not subject to negotiation.
• Investor sentiment improved on prospects of de-escalation, with the real up about 1% and the Bovespa index hitting a record high.
• Reaction in Brazil was mixed, as some Bolsonaro allies downplayed the exchange while Eduardo Bolsonaro praised Trump and Gov. Tarcisio de Freitas urged talks.