US President Donald Trump and Brazilian President Luiz Inacio Lula da Silva held a 40-minute phone call on Tuesday, signaling a thaw in relations between the two countries after months of economic and political tensions. Both leaders described the conversation as “productive,” focusing on trade, sanctions, and collaboration against organized crime.

Trade Talks and Tariff Rollbacks

The discussion addressed US tariffs on Brazilian goods, imposed earlier this year after Trump criticized Brazil’s handling of former President Jair Bolsonaro’s prosecution. In August, Trump implemented 50% tariffs on selected Brazilian exports, including coffee, cocoa, and beef.

Following their conversation, Lula praised the partial tariff rollback as “very positive” but stressed that further negotiations were needed.

“I highlighted that there are still other tariffed products that need to be discussed between the two countries. Brazil wants to move quickly in these negotiations,” Lula said.

Trump confirmed that they also discussed US sanctions against Brazilian officials, signaling willingness to collaborate on easing tensions.

Background: Bolsonaro, Tariffs, and Sanctions

Relations between Washington and Brasília deteriorated after Lula defeated Bolsonaro in 2022 and the Brazilian Supreme Court charged Bolsonaro with attempting to overturn the election. Trump had protested Bolsonaro’s prosecution and threatened tariffs, which went into effect in August 2025. Bolsonaro was recently sentenced to 27 years in prison.

The two leaders previously met in September at the UN General Assembly (UNGA), sharing a surprisingly warm encounter. They also met during the ASEAN summit in Malaysia in late October, further improving diplomatic rapport.

Collaboration Against Organized Crime

Another key topic was fighting organized crime in Latin America. Trump has prioritized targeting cartels and gangs, labeling many as “foreign terrorist organizations” and conducting air strikes on boats in the Caribbean and Pacific. These operations have killed at least 83 people, drawing criticism from human rights experts.

Lula emphasized Brazil’s commitment to tackling criminal networks ahead of his 2026 re-election bid, including stronger federal police powers and intelligence support. He condemned a bloody October 28 police raid in Rio de Janeiro but reiterated that collaboration with the US is essential.

“We need firm and secure laws to fight organised crime,” Lula said.
“Brazil is committed to suffocating criminal networks with support from the United States.”

Economic Context

The US is Brazil’s second-largest trading partner after China. In 2024, trade between the two countries totaled $127.6 billion, with the US exporting $91.5 billion to Brazil and importing $36.1 billion. Despite criticisms of Brazil’s economic policies, the country maintains a trade deficit with the US.