U.S. Aims to Replace China as Brazil’s Key Trade Partner Ahead of Lula-Trump Meeting
Ahead of the Lula-Trump meeting, U.S. Secretary of State Marco Rubio underscores America's goal to supplant China as Brazil's foremost trade partner by leveraging tariff negotiations and strategic alliances.
- • U.S. Secretary of State Marco Rubio announced the U.S. aims to become Brazil's main trade partner instead of China.
- • Trump indicated willingness to reduce 40%-50% tariffs on Brazilian goods under certain conditions.
- • Brazil currently exports nearly one-third of its goods to China, maintaining the largest trade partnership in Latin America.
- • Both Lula and Trump expressed optimism and readiness to negotiate trade issues without preconditions.
- • Rubio highlighted ongoing tensions but stressed the long-term benefits of a U.S.-Brazil partnership to counter China's regional influence.
Key details
U.S. Secretary of State Marco Rubio declared on October 25, 2025, that the United States intends to become Brazil’s primary trading partner, overtaking China. Speaking en route to the ASEAN Summit in Malaysia, Rubio emphasized the strategic benefits for Brazil in deepening trade ties with the U.S., citing cultural and geographic alignment and the potential to counterbalance China's growing influence in South America. Currently, China remains Brazil’s top trade partner, accounting for nearly one-third of Brazilian exports, with significant Chinese investment in sectors such as energy, infrastructure, and communications.
Rubio’s comments came on the eve of a pivotal meeting between U.S. President Donald Trump and Brazilian President Luiz Inácio Lula da Silva, also in Kuala Lumpur. Trump hinted at the possibility of lowering tariffs on Brazilian products, which are presently at 40%-50%, signaling a willingness to negotiate conditions for trade liberalization. This marks the first public indication from the U.S. side that tariff reductions, introduced in July for political reasons, could be reconsidered.
Lula arrived in Malaysia expressing optimism about the talks, emphasizing readiness to engage without preconditions and noting he had not yet received any formal U.S. demands. Rubio, who has been appointed as the primary U.S. negotiator on these issues, acknowledged ongoing bilateral tensions, including concerns related to Brazil’s treatment of U.S. entities on social media, but remains confident in the prospects for constructive dialogue.
This strategic push reflects Washington’s broader objective of diminishing China’s economic and technological footprint in Latin America, making Brazil the centerpiece of this effort given its regional prominence. Both leaders have characterized preliminary exchanges as positive and are aiming to forge a renewed commercial partnership that benefits both Americas’ largest economies.