Lula Celebrates U.S. Tariff Reduction on Brazilian Goods Amid Signs of Political Thaw
Brazil celebrates significant U.S. tariff cuts on its products, signaling improved trade ties amid ongoing negotiations and political implications.
- • President Lula celebrates 40% tariff reduction by U.S. on over 200 Brazilian products including coffee and beef.
- • Vice President Alckmin and Finance Minister Haddad see the tariff cuts as beneficial to jobs and production integration.
- • Brazil views tariff suspension as a political thaw, though industrial product tariffs remain under negotiation.
- • The tariff reduction is part of Trump’s strategy to lower U.S. food prices amid political pressure.
- • Brazilian officials anticipate further talks on exemptions and potential U.S. demands, including on tech and rare earth elements.
Key details
On November 21, 2025, President Luiz Inácio Lula da Silva publicly welcomed the United States' decision to reduce tariffs by 40% on over 200 Brazilian products, including staples such as coffee and beef. The tariff cuts, retroactive to November 13, were announced by President Donald Trump and viewed by Brazil as a significant step toward improving bilateral trade and diplomatic relations.
Lula expressed his satisfaction during the opening of the International Automobile Salon in São Paulo, stating, "Today I am happy because President Trump has started to reduce some tariffs he had imposed on Brazilian products. These things will happen as we gain respect from others.” He stressed the importance of respect in economic and political exchanges, underscoring that negotiations require timing and transparency. Before leaving for the G20 Summit in South Africa, Lula invited Trump to visit Brazil and indicated his willingness to travel to Washington to resolve remaining trade and political differences.
Vice President Geraldo Alckmin, involved in negotiating on affected sectors, characterized the tariff reductions as creators of jobs and facilitators of international commerce. Finance Minister Fernando Haddad, also accompanying Lula, highlighted the government's priority in developing integrated production chains to enhance export and import flows.
Trump's move is seen by Brazil's Itamaraty as a political rapprochement, especially as Lula's name featured prominently in the White House announcement, considered a political victory in Brazil. However, tensions linger concerning tariffs on industrial goods like machinery and engines, which remain under negotiation. Brazilian officials anticipate potential exemptions and are cautiously monitoring U.S. demands, which might include regulatory issues involving major technology firms and rare earth elements.
The tariff suspension reflects a broader strategic recalibration by Trump aimed at addressing rising U.S. food prices and mitigating consumer costs ahead of Thanksgiving, amid declining approval ratings. International media highlighted this as part of Trump's effort to ease living costs and soften trade tensions, with Brazil moving from a heavily penalized country under the previous U.S. trade regime to one of the least taxed nations. The Brazilian Coffee Exporters Association praised the tariff cut as a reinforcement of trade stability.
While the tariff reduction represents a milestone in Brazil-U.S. trade relations, ongoing negotiations on industrial tariffs and political dialogues indicate that the path toward fully normalized economic ties remains a work in progress.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.