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Lula holds lead and discusses tariffs with Trump
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Lula Urges Trump to Resume Tariff Talks in Hour-Long Call

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Lula Urges Trump to Resume Tariff Talks in Hour-Long Call

Brazilian President Luiz Inácio Lula da Silva urged U.S. President Donald Trump to resume negotiations over U.S. tariffs on Brazilian goods during a phone call on Friday. Lula called the U.S. allegations of unfair trade practices 'unfounded' and reiterated that negotiations are the best way to resolve the dispute. Trump proposed that officials from both governments meet as soon as possible, according to Brazil's government.

Key Facts

  • The call lasted more than one hour, according to Brazil's government.
  • The U.S. imposed 25% tariffs on many Brazilian goods in July, citing unfair trade practices.
  • Brazil blocked visas for two State Department officials in late July over election integrity concerns.
  • The U.S. revoked the visa of Brazil's ambassador to Washington after alleging delayed accreditation for its envoy.
  • Brazil started a process seeking further consultations with U.S. trade authorities earlier this month.

The Call

Lula pushed back on U.S. allegations of unfair trading practices during the call, telling Trump they were 'unfounded.' Trump proposed that officials from both governments meet as soon as possible, Brazil said. The White House did not immediately respond to a request for comment. The call is the first the leaders have held since ties frayed in May, when the U.S. designated two Brazilian criminal groups as terrorist organizations.

Tariff Dispute

The U.S. government announced 25% tariffs last month on some Brazilian goods, alleging unfair trade practices. Washington also imposed 12.5% tariffs on goods from dozens of nations, including Brazil, linked to allegations of lax enforcement of forced labor bans. Lula said the tariffs would harm both economies and that the allegations cited by Washington, including concerns over deforestation, intellectual property, corruption, Brazil's Pix instant payment system, ethanol, and imports allegedly tied to forced labor, were unfounded. Earlier this month, Brazil started a process seeking further consultations with U.S. trade authorities, a move that could lead to measures against Washington.

Diplomatic Fallout

The moves helped plunge the U.S. and Brazil into a diplomatic dispute after Lula accused Washington of attempting to interfere in its election on behalf of right-wing presidential candidate Flávio Bolsonaro. In late July, Brazil blocked visas for two State Department officials out of fears they planned to question the integrity of its election system. The U.S. then revoked the visa of Brazil's ambassador to Washington, although she remains allowed to work in the country, after alleging that Lula's government had delayed accreditation for its envoy to Brasilia. Lula and Trump squabbled last year after the U.S. leader slapped 50% tariffs on Brazilian goods in an unsuccessful bid to help former President Jair Bolsonaro dodge coup attempt charges. Trump later lifted the levies after he and Lula mended ties.

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Lula Urges Trump to Resume Tariff Talks in Hour-Long Call