Lula Celebrates End of US Tariffs and Strengthened Brazil-US Relations in 2025

In his Christmas Eve address, President Luiz Inácio Lula da Silva celebrated the resolution of a significant trade dispute with the United States that had challenged Brazil throughout 2025. The US had imposed a 10% tariff on Brazilian products in April, which escalated to 50% by August, severely impacting Brazil's exports and straining diplomatic relations. However, following a pivotal meeting with former President Donald Trump at the UN General Assembly and subsequent negotiations, the US tariffs were successfully lifted in November.

Lula highlighted that Brazil opened 500 new markets for its products in December, signaling a robust recovery in trade. He emphasized the importance of diplomacy in protecting Brazilian companies and avoiding layoffs, stating that the tariff's impact became "irrelevant" due to effective dialogue. Lula also credited the improved relations to an emerging friendship with Trump, fostered through personal chemistry and ongoing discussions addressing trade and organized crime.

Beyond trade, Lula reflected on Brazil's victories in 2025, including the country’s exit from the Mapa da Fome and the introduction of income tax exemptions for lower-income earners, which will alleviate financial burdens for many families starting January. He further underscored major public security advances, such as the Federal Police's largest organized crime operation and commitments to combat violence against women. Additionally, Lula advocated for ending the 6x1 work schedule to improve worker well-being.

This diplomatic breakthrough and policy momentum mark a positive turning point for Brazil's economy and international standing as the year closes.