Brazil-US Trade Tariff Talks Near Resolution Amid US Senate Vote
Brazil and the US are close to a trade deal ending tariffs amid Senate rejection of Trump-era duties, though House approval remains uncertain.
- • Lula optimistic about a swift resolution to US tariffs on Brazilian products after meeting Trump.
- • US Senate voted 52-48 to revoke 50% tariffs on Brazilian goods, but House of Representatives likely to block measure.
- • Brazil and US delegations scheduled for upcoming talks focusing on affected trade sectors.
- • Discussions now centered on trade issues separate from political disputes according to Brazilian officials.
Key details
Brazilian President Luiz Inácio Lula da Silva expressed strong optimism on October 29, 2025, about an imminent resolution to the ongoing trade tariff dispute with the United States. Speaking after a meeting with US President Donald Trump in Kuala Lumpur, Lula said both countries are close to finalizing a "high-quality agreement" and expects a definitive solution within days that will allow relations to continue positively. Lula highlighted that the US sustains a trade surplus with Brazil, undermining the rationale for the tariffs and prompting his demand for fair treatment. He emphasized, "The United States does not have a deficit with our country, and that was the justification for the famous taxation: tariffs would only be applied to countries with which there was a trade deficit." Brazilian Foreign Minister Mauro Vieira mentioned that delegations from both sides will meet in the coming weeks to advance discussions focusing on sectors most affected by the tariffs. There is an evident move from political to purely trade-related negotiations, as stressed by Márcio Rosa of Brazil's Ministry of Development, Commerce and Services, who said, "Political aspects are no longer on the table. Today we are discussing a trade agreement, not issues of any other nature." Meanwhile, the US Senate voted 52-48 to revoke the 50% tariffs on Brazilian goods imposed during the Trump administration. This bipartisan vote included support from five Republican senators, marking a symbolic defeat for Trump's tariff policies. However, the practical impact remains uncertain, as the House of Representatives, with stronger White House backing, is expected to block this measure until at least the end of 2025. Senator Tim Kaine and others questioned the use of executive emergency powers that led to these tariffs, while senators like Rand Paul and Mitch McConnell criticized the negative economic effects of trade wars. Despite the tariff dispute, Lula also conveyed Brazil's readiness to assist diplomatic efforts in South America, particularly regarding Venezuela, and extended an invitation to Trump for the upcoming COP30 climate conference in Brazil. Additionally, Brazil is pursuing expanded economic ties with Southeast Asia as part of its foreign policy diversification efforts.