Trump and Lula discuss US tariffs on Brazil and sanctions over phone call

Brazil and United States Signal Warming Relations After Months of Strain

Brazilian President Luiz Inacio Lula da Silva and United States President Donald Trump indicated that ties between their nations are improving following a period of economic and political friction. The two leaders spoke for forty minutes on Tuesday in what both governments described as a productive conversation.

Their discussion focused on lowering trade barriers and enhancing cooperation against transnational crime, and both agreed to continue dialogue in the near future. Lula later wrote on social media that he emphasised the need for closer coordination with Washington to counter international criminal groups. According to him, Trump expressed a strong readiness to work jointly with Brazil and to support collaborative initiatives aimed at dismantling such organisations.

Trump noted that the call built on an initial exchange the pair had in September during the United Nations General Assembly in New York. He said that their encounter at the UN laid the foundation for long term communication and mutual understanding, adding that he expects further meetings soon.

Although the two countries have traditionally enjoyed stable relations, tensions rose earlier this year after Trump began his second term in office. The American president previously had a close alliance with former Brazilian leader Jair Bolsonaro, who left office in 2023. In February, Bolsonaro was charged by Brazils attorney general with trying to overturn the 2022 election results, which he lost to Lula. The case proceeded to Brazils Supreme Court, prompting Trump to condemn the process. In July, he warned that tariffs on some Brazilian imports would rise to fifty percent if the case continued, a threat that was implemented the following month.

The United States also introduced sanctions and visa restrictions targeting Supreme Court Justice Alexandre de Moraes, who played a central role in the Bolsonaro probe. Lula strongly criticised Trump for attempting to influence Brazils judiciary and compared the tariff escalation to coercion. Bolsonaro has since been sentenced to twenty seven years in prison and was detained last month.

A shift in tone emerged in September when Lula and Trump met briefly at the UN General Assembly. They shared a warm greeting that both described as unexpected. Trump later said the encounter showed they had good rapport and indicated he intended to meet Lula again.

The leaders had another meeting in Malaysia during an ASEAN summit, and on November 20 Trump announced a reversal of the tariff increase on several Brazilian agricultural goods, including coffee, cocoa and beef. Lula welcomed the step as positive while stressing that other trade issues still need to be addressed and that Brazil intends to move quickly in upcoming negotiations.

Trump stated that Tuesdays call also covered the matter of sanctions the United States imposed on certain Brazilian officials. The US is Brazils second largest trading partner after China, with total bilateral trade reaching around 127.6 billion dollars in 2024. Despite Trumps concerns about Brazilian economic policies, Brazil runs a significant trade deficit with the US, importing far more American goods than it exports.

Another major topic of the call was expanding joint efforts to combat organised crime. Addressing criminal networks in Latin America has been a central component of Trumps foreign policy. His administration has designated several regional gangs and cartels as foreign terrorist organisations and carried out air strikes on vessels in the Caribbean and eastern Pacific, actions he describes as necessary to curb drug trafficking. Human rights advocates argue the operations constitute extrajudicial killings and violate international law, noting that dozens of people have died in the strikes.

Lula is also under internal pressure to respond to rising crime ahead of Brazils 2026 presidential election. In November he urged Congress to consider stronger legislation supporting federal police and intelligence agencies. His administration has faced scrutiny after an October 28 police operation in Rio de Janeiro resulted in 122 deaths during an assault targeting the Red Command criminal group. Lula has called for a full investigation into the incident.

Following Tuesdays conversation with Trump, Lula reaffirmed his intention to weaken the influence of criminal organisations in Brazil with support from the United States.