Brazil and U.S. Officials Advance Tariff Talks Following Lula-Trump Meeting
Following their meeting, Brazilian and U.S. officials convened to negotiate tariff reductions amid complex trade and political considerations.
- • Brazilian and U.S. delegations met in Malaysia to negotiate tariff reductions on Brazilian exports.
- • The talks follow Lula and Trump's recent friendly meeting, seen as a political win for Lula.
- • U.S. demands included greater access to Brazilian economic sectors as part of tariff discussions.
- • Negotiations are complex and ongoing, with both sides showing willingness but no immediate resolution.
- • Lula seeks to lift U.S. sanctions on Brazilian officials imposed during Trump’s administration.
Key details
Brazilian and American delegations met in Malaysia on October 26 to negotiate reductions in U.S. tariffs on Brazilian products, a direct follow-up to Brazilian President Luiz Inácio Lula da Silva's recent cordial meeting with former U.S. President Donald Trump. The talks, involving Brazilian Foreign Minister Mauro Vieira and Secretary Márcio Rosa, alongside U.S. Secretary of State Marco Rubio and Treasury Secretary Scott Bessent, focused on suspending or lowering tariffs on items such as aluminum, coffee, steel, and ethanol.
Analyst Américo Martins described the negotiation atmosphere as promising though without concrete decisions yet. Lula presented economic arguments highlighting how the existing tariffs, including those imposed at 40% and 10%, harm trade and are counterproductive for the U.S. Trump responded positively, indicating openness to reevaluating the tariffs and instructing swift negotiations. However, the U.S. delegation demands greater Brazilian market access in certain sectors as part of any deal.
The National Confederation of Industry praised the meeting as a positive step toward improving bilateral trade relations, and political scientist Hussein Kalout termed Lula's engagement with Trump a "tremendous victory" ahead of Brazil's 2026 elections, while cautioning that resolving tariff issues remains complex and lengthy. Lula also aims to lift sanctions on Brazilian officials imposed by Trump related to legal challenges facing former President Jair Bolsonaro, whose U.S. influence seems to be waning.
The discussions represent a critical diplomatic effort to reduce the 50% tariff burden on Brazilian exports and could mark a shift in U.S.-Brazil trade dynamics, although both leaders remain firm on their positions. Lula is scheduled to update the public on negotiation outcomes soon.