President Donald Trump and Brazilian President Luiz Inácio Lula da Silva met at the White House on Thursday to address significant fractures in the relationship between the South American nation and the United States.
The three-hour meeting touched on issues of security, elections, the war in Iran and, of course, Washington’s duty-driven trade strategy and what it means for bilateral dealings between the two economies.
“Just concluded my meeting with Luiz Inácio Lula da Silva, the very dynamic President of Brazil. We discussed many topics, including Trade and, specifically, Tariffs,” Trump wrote on Truth Social soon after the sit-down’s conclusion.
“The meeting went very well,” Trump added, noting that representatives from Brazil and the U.S. are scheduled to convene again to discuss “certain key elements.”
The Trump administration hit Brazil with punishing 50 percent tariffs last year—the highest rate imposed upon a trade partner under the “reciprocal” tariff structure with the exception of India and, at one point, China. The move stemmed from his frustration at the prosecution of former Brazilian leader and one-time ally Jair Bolsonaro, who allegedly plotted a coup to stay in office after losing the 2022 election to Lula.
The duties were eventually removed in part to quell unease about inflation and the rising cost of groceries, including Brazilian imports like coffee and beef.
According to the New York Times, Lula told Trump that Brazil, which has ample critical mineral resources, wants to do business with partners across the globe, including both China and the U.S., along with Europe.
Trump appeared ready on Thursday to turn the page on the contention, referring to Lula as “very dynamic.” The Brazilian leader said he was “optimistic” about the prospects for the relationship moving forward.
That optimism may be premature, however, as Brazil is one of 60 nations being investigated by the Office of the U.S. Trade Representative for failing to prohibit the importation of goods made with forced labor under Section 301 of the Trade Act of 1974. Two days of hearings took place last week wherein U.S. industry groups largely advocated against new tariffs that they said would be burdensome to American companies and consumers.
Trump’s ire with Brazil also stems from its role in the BRICS Alliance, a global trade bloc representing around 45 percent of the world’s population and a sizable portion of its GDP. It’s comprised of the U.S.’ biggest competitors including Russia, India and China—the nucleus of U.S. forced labor allegations. The Alliance aims to see the Global South gain greater influence geopolitically and has positioned itself as an economic challenger to Western dominance.
Brazil is also the largest nation in the Mercosur trade bloc of South American economies including Argentina, Paraguay, Uruguay and Bolivia. The bloc has been forging new trade relationships, like an expansive trade agreement with the European Union, in the wake of the tariff turmoil that has seen many of America’s closest trade ties unravel. The deal, which was provisionally applied on May 1, created the largest free trade zone in the world, encompassing 32 countries.
By contrast, the EU-U.S. trade agreement, which was forged through a handshake last July between Trump and President of the European Commission, Ursula von der Leyen, has stagnated. This week, European representatives met in Paris to discuss the future of the deal, the ratification of which was put on pause following the Supreme Court’s decision to invalidate the basis of Trump’s reciprocal tariff scheme.
Trump, for his part, appeared eager on Thursday to see the deal, which promises duty-free trade for U.S. products, dutifully applied. Shortly after his Truth about the meeting with Lula, the president took to social media again, saying he had a “great call” with von der Leyen.
“I’ve been waiting patiently for the EU to fulfill their side of the Historic Trade Deal we agreed in Turnberry, Scotland, the largest Trade Deal, ever! A promise was made that the EU would deliver their side of the Deal and, as per Agreement, cut their Tariffs to ZERO!,” he wrote.
As is customary for Trump, the missive ended with a threat. “I agreed to give her until our Country’s 250th Birthday or, unfortunately, their Tariffs would immediately jump to much higher levels,” he added.
