Lula and Trump Discuss Tariffs in "Friendly" Phone Call, Potential Meeting on the Horizon
Brazilian President Luiz Inácio Lula da Silva and U.S. President Donald Trump engaged in a 30-minute phone conversation, described as "friendly," where Lula requested the removal of punitive trade tariffs on Brazilian products. The leaders also discussed the possibility of an in-person meeting, potentially at the ASEAN summit in Malaysia next month.
Key Discussion Points
During their first official talks since months of diplomatic tension, Lula specifically asked Trump to eliminate tariffs imposed on Brazilian goods and sanctions against Brazilian officials. These measures were previously implemented by Trump in response to the trial and conviction of his ally, former Brazilian President Jair Bolsonaro.
- Tariff Removal Request: Lula urged Trump to lift the 50% tariff on Brazilian products.
- Sanctions on Officials: Lula sought the removal of sanctions against Brazilian officials.
- Potential Meeting: The leaders discussed meeting in person, possibly at the ASEAN summit or in Brazil/United States.
Trump's Response and Future Negotiations
President Trump characterized the discussion as "a very good telephone call" on his Truth Social platform. He indicated that further discussions would take place and that they would meet in person in the "not too distant future," both in Brazil and the United States. Secretary of State Marco Rubio has been appointed to continue negotiations with Brazilian officials, including Vice-President Geraldo Alckmin, Foreign Minister Mauro Vieira, and Finance Minister Fernando Haddad.
Background and Deterioration of Relations
Relations between Washington and Brasília have been strained due to Trump's disapproval of the trial and conviction of Bolsonaro. He had imposed a 50% tariff on Brazilian products and sanctioned several top officials, including a Supreme Court judge, viewing these actions as a response to what he perceived as a "witch hunt" against Bolsonaro. Despite these tensions, both leaders seem open to improving relations.
Behind the Scenes and Private Sector Involvement
Efforts to improve relations involved a "diplomatic operation" culminating in a brief encounter at the UN General Assembly last month. A Brazilian government source revealed the private sector played a key role in the rapprochement, citing meetings between Trump and Brazilian beef tycoon Joesley Batista. Brazilian aircraft manufacturer Embraer also reportedly pressured the White House.
Impact on Trade and the Brazilian Economy
The tariffs have significantly impacted Brazilian exports to the United States. Brazilian trade data for September showed a 20.3% decrease in exports to the U.S. compared to the previous year, while imports from the U.S. increased by 14.3%. However, Brazil has been actively diversifying its exports to other major markets, particularly in Asia, with overall exports growing by 7.2% in September.
Looking Ahead
The "friendly" phone call between Lula and Trump offers a glimmer of hope for a potential thaw in U.S.-Brazil relations. While significant political differences remain, the willingness to engage in dialogue and consider removing trade barriers suggests a path towards a more constructive partnership. The success of future negotiations, however, will depend on both sides' commitment to finding mutually beneficial solutions.
