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Thursday, July 2, 2026

Brazil’s Lula meets Trump amid efforts to avert new US trade tariffs

 


Brazilian President Luiz Inácio Lula da Silva has met US President Donald Trump at the White House for talks aimed at resetting strained relations between the two countries.

The meeting was expected to focus on key issues including trade, security cooperation, and the supply of critical minerals, as Lula seeks to stabilise ties following months of tension between Brasília and Washington.

Despite their sharp ideological differences, Thursday’s encounter brought together two of the world’s most prominent populist leaders in an effort to explore areas of mutual interest and reduce friction in the bilateral relationship.

The White House meeting between Brazilian President Luiz Inácio Lula da Silva and US President Donald Trump concluded without the joint press appearance that had been expected in the Oval Office, prompting speculation that talks may have encountered difficulties.

However, shortly afterwards, Trump posted on social media platform Truth Social, describing the discussions with his “very dynamic” Brazilian counterpart as positive. He said the meeting covered several topics, including trade and tariffs, and added that further meetings between the two sides would be scheduled in the coming months.

Lula also expressed satisfaction with the outcome, telling reporters at the Brazilian Embassy that he left the three-hour meeting “very, very satisfied.” He described the discussions as an important step in strengthening the Brazil–United States relationship and said it was crucial for Washington to renew its engagement with developments in Brazil.

Both leaders have built strong political bases by positioning themselves against established political elites, despite significant differences in economic and foreign policy approaches. Brazilian officials had entered the talks hoping to ease tensions that escalated following US tariff measures and criticism related to the prosecution and conviction of former Brazilian President Jair Bolsonaro.

Last year, the administration of Donald Trump imposed tariffs of up to 50 percent on Brazilian products, among the highest applied to any US trading partner.

The tariffs were justified by the White House on the grounds of alleged political persecution in Brazil, with Trump accusing Brazilian authorities of conducting a “witch-hunt” against former President Jair Bolsonaro.

Bolsonaro was later convicted for attempting to overturn democratic institutions following his time in office, a development that further intensified political tensions surrounding US–Brazil relations and added a geopolitical dimension to the existing trade dispute.

The administration of Donald Trump later rolled back most of the tariffs imposed on Brazilian exports, including key agricultural products such as beef and coffee.

The decision was seen in part as an effort to ease upward pressure on US consumer prices, particularly in the grocery sector, where food inflation had become a growing political and economic concern.

The partial withdrawal marked a softening of earlier trade measures that had been introduced amid heightened political tensions between Washington and Brasília.

Worries about new tariffs

In February, the United States Supreme Court struck down a set of global tariffs imposed under a national emergencies law, removing a significant portion of the earlier levies introduced during the administration of Donald Trump.

Despite that ruling, Brazilian exports have continued to face an additional 10 percent tariff, which is currently scheduled to expire in July.

More recently, however, Brazil has come under renewed trade scrutiny, with signals emerging that its exports could be targeted by new duties linked to a Section 301 investigation into alleged unfair trade practices. These developments suggest that, even as some earlier measures have been rolled back, the broader trade dispute between Washington and Brasília remains active and potentially escalating.

Tensions between the United States and Brazil continue to persist over digital trade policy, particularly after Brazil blocked a US-backed effort to renew a World Trade Organization moratorium on e-commerce tariffs. Disputes also remain over Brazilian tariff levels on certain imports, including ethanol.

The Office of the United States Trade Representative recently alleged that nearly half of Brazil’s timber exports originate from illegal sources. The administration of President Luiz Inácio Lula da Silva has rejected these claims, arguing instead that Brazil has significantly reduced deforestation and achieved historically low rates in recent years.

The diplomatic engagement also comes at a politically sensitive moment domestically for Lula. He recently faced setbacks in Congress, including the lower house overturning his veto on legislation aimed at reducing prison sentences linked to former President Jair Bolsonaro, as well as the Senate rejecting his nominee to the Supreme Court — the first such rejection in over a century.

Despite these challenges, Lula remains politically active ahead of Brazil’s upcoming election, where he is expected to pursue a fourth non-consecutive term. Polling currently shows a closely contested race between him and Senator Flávio Bolsonaro, the son of his former rival Jair Bolsonaro.

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