Brazilian President Luiz Inacio Lula da Silva announced on Sunday that Brazil and the United States would begin immediate discussions to resolve the growing dispute over increased US tariffs on Brazilian goods. Lula said he had a positive meeting with US President Donald Trump on the sidelines of the ASEAN summit in Kuala Lumpur, where both leaders agreed to seek solutions through diplomatic and economic engagement. The two presidents directed their teams to start talks “immediately” to address trade barriers and sanctions affecting Brazilian officials.
The tensions between the two nations escalated after Washington sharply raised tariffs on most Brazilian imports in August, increasing them from 10% to 50%. Trump justified the move by linking it to what he described as political persecution of former Brazilian President Jair Bolsonaro, whose attempted coup trial was overseen by Justice Alexandre de Moraes—one of the officials targeted by US sanctions. Lula, however, called the tariff hike a “mistake,” pointing out that the United States had maintained a $410 billion trade surplus with Brazil over the past fifteen years.
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In a statement following their meeting, Lula said the discussions aimed to “advance the search for solutions” that could restore trade stability between both nations. He stressed that constructive dialogue was the only way to rebuild trust and balance economic interests. Trump, while maintaining a firm stance, hinted at optimism before the talks, saying he believed “pretty good deals for both countries” could be reached soon.
Brazil’s Foreign Minister Mauro Vieira confirmed that negotiations would start without delay, with both sides preparing a clear schedule to identify priority sectors for discussion. Vieira noted that Brazil had officially requested the suspension of US tariffs during the negotiation process to prevent further harm to its export industries. However, he said it was still uncertain whether the United States had agreed to this request.
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Meanwhile, the impact of higher US tariffs has already started reshaping global trade flows. The increased costs have pushed up beef prices in the US and encouraged indirect trade through countries such as Mexico. At the same time, Brazil’s exports to China have continued to grow, underscoring the urgency for Brazil and the US to reach a mutually beneficial resolution in the coming weeks.