Lula and Trump Commit to Swift Resolution on Brazil-U.S. Tariff Dispute After Kuala Lumpur Meeting
Brazilian President Lula and former U.S. President Trump met in Malaysia to discuss tariff suspensions and revitalize trade negotiations, aiming for a swift resolution to bilateral tariff disputes.
- • Lula and Trump met on October 26, 2025, in Kuala Lumpur to discuss tariffs and trade relations.
- • Brazil demands immediate suspension of the U.S. 50% tariffs on Brazilian exports as a condition for progressing negotiations.
- • Key negotiation topics include critical minerals, digital regulation, sugar, ethanol, and pork trade.
- • Brazilian officials and business leaders see the meeting as a significant step toward restoring diplomatic dialogue and economic cooperation.
Key details
On October 26, 2025, Brazilian President Luiz Inácio Lula da Silva and former U.S. President Donald Trump met in Kuala Lumpur, Malaysia, to address escalating trade tensions between the two countries, specifically focusing on tariff disputes and bilateral trade relations. Both leaders expressed optimism about reaching constructive agreements that would benefit their nations and improve longstanding diplomatic ties.
During the meeting, Lula urged the immediate suspension of the 50% tariffs imposed by the U.S. on Brazilian exports in August. These elevated duties, which Trump linked to political motives against former President Jair Bolsonaro, have hampered trade negotiations. Lula emphasized that genuine dialogue and progress on trade cannot advance unless these tariffs are lifted. Trump expressed admiration for Lula's political career and conveyed hope for successful agreements, describing the meeting as pleasant and honorable.
Negotiators pinpointed the tariff suspension as a precondition for advancing talks, which are expected to include critical areas such as trade in agricultural products like sugar and ethanol, digital sector regulations, and sustainable sourcing of critical minerals like lithium and nickel, vital for energy transition. Brazil seeks reduced tariffs on its sugar and ethanol exports in exchange for granting the U.S. better access to its markets, while the U.S. pushes to export pork and ethanol at favorable rates. The discussions also entail broader geopolitical considerations, with Lula offering to mediate tensions between the U.S. and Venezuela.
Brazilian officials, including Parliament President Hugo Motta and Senators Jaques Wagner and Humberto Costa, hailed the meeting as a turning point, marking a return to diplomacy and dialogue. The Brazilian-American Chamber of Commerce (Amcham Brasil) welcomed the renewed conversations and highlighted the importance of expedited negotiations for fostering trade and investment between the two largest economies in the Americas.
Preparations for intense follow-up discussions are underway, involving U.S. Secretary of State Marco Rubio and Brazil's Foreign Minister Mauro Vieira. Both sides envision a balanced trade agreement that respects sovereignty and promotes mutual economic growth. Lula's social media announcements described the summit as positive and constructive, reinforcing a commitment to collaboration without conflict between Brazil and the United States.