Quick overview

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Brazilian President Luiz Inácio Lula da Silva urged his U.S. counterpart, Donald Trump, to lift sanctions on Brazilian products and government officials during their first formal phone conversation since Trump’s return to the White House.

The American president, meanwhile, appointed Secretary of State Marco Rubio to lead the ongoing negotiations. The 30-minute videoconference, described by Brazil’s government as having a “friendly tone,” centered on Lula’s request for Washington to roll back punitive trade and diplomatic measures. The Trump administration recently imposed 50% tariffs on several Brazilian exports, along with sanctions targeting senior officials.

According to an official statement from the Palácio do Planalto, Lula specifically asked for “the removal of tariffs on Brazilian goods and the restrictive measures against Brazilian authorities.” Finance Minister Fernando Haddad called the exchange “positive” and said the president had already instructed the release of an official communiqué.

During the call, Trump delegated further talks to Rubio, who will coordinate with Brazil’s Vice President Geraldo Alckmin, Foreign Minister Mauro Vieira, and Haddad. Both leaders agreed to hold an in-person meeting soon—potentially at the ASEAN summit in Malaysia later this month, or possibly in Washington. Lula also renewed his invitation for Trump to attend COP30 in Belém, Pará, this November.

The Trade Deficit Argument

Lula defended his request by noting that Brazil is one of only three G20 members—alongside the United Kingdom and Australia—that run a trade deficit with the United States.

The call marks the first extended contact between the two leaders since Trump’s return to power. Their last brief encounter occurred during last month’s UN General Assembly in New York, where Trump praised his “great chemistry” with Lula—a remark the Brazilian president called “a pleasant surprise,” though he added that Trump had received “misleading information about Brazil.”

50% Tariffs Linked to Bolsonaro Case

Brazilian markets are closely watching the outcome of these talks, as Washington’s pressure has so far failed to alter the political fate of former President Jair Bolsonaro. His conviction for attempting to subvert the country’s democratic process was recently upheld, despite lobbying efforts by allies in Washington, led by Congressman Eduardo Bolsonaro.

Since August, a large portion of Brazilian exports to the U.S. have faced a 50% import duty, while key sectors like aviation and orange juice have been hit with a 10% surcharge. The White House justified the move as retaliation for what Trump called a “witch hunt” against his “main political ally in South America.”