Kuala Lumpur: Brazilian President Luiz Inácio Lula da Silva expressed strong optimism on Monday that Brazil and the United States are on the verge of reaching a new trade agreement, following what he described as a “very good and friendly” meeting with U.S. President Donald Trump.
The two leaders met on the sidelines of the ASEAN Summit in Malaysia, where Trump has been holding a series of bilateral meetings during his three-nation Asia tour that also includes Japan and South Korea. Their dialogue marked a significant step toward easing months of trade tensions that had strained relations between the two largest democracies in the Western Hemisphere.
Speaking at a press conference in Kuala Lumpur, Lula said he was “convinced” that a trade deal with the United States would be finalized soon. “It was a very good meeting, very friendly,” he told reporters. “I have President Trump’s direct phone number; he has my direct phone number. I am convinced that in a few days, we will reach a solution for the issues of Brazil and the U.S.”
Lula explained that he had personally handed Trump a written agenda outlining Brazil’s key trade priorities and concerns. “The current tariffs imposed on Brazilian exports are baseless,” Lula said. “They were established using wrong information about Brazil, and I believe President Trump now understands our position.”
He added that the tone of the conversation reflected mutual respect between the two governments. “Brazil and the U.S. are the two most important democracies of the Western Hemisphere,” Lula emphasized. “We have to serve as an example of free trade, multilateralism, and democratic cooperation.”
Relations between Brasília and Washington had soured earlier this year when President Trump imposed a 50% tariff on Brazilian imports on August 1, citing what he called “unfair policies.” The move came after Trump accused Lula’s government of pursuing politically motivated trials against former President Jair Bolsonaro, a right-wing leader and longtime Trump ally.
Bolsonaro was later convicted of plotting a coup and sentenced to 27 years in prison, a verdict that drew international attention and widened the rift between the two nations. Lula’s administration denounced Trump’s tariff move as “punitive and unfounded,” but avoided escalating the dispute, instead calling for “dialogue and partnership.”
Monday’s meeting appears to have reversed much of that hostility. “The atmosphere was very constructive,” a Brazilian official traveling with Lula said. “President Trump’s tone was more conciliatory than we have heard in months.”
President Trump also struck a conciliatory note after the bilateral discussion, signaling a new willingness to repair ties with Brazil. “I think we’ll make a deal with Brazil,” he told reporters. “We have a lot of respect for your president, as you know, a lot of respect for Brazil.”
The comments mark a shift from Trump’s earlier hardline approach to South American trade, and analysts see it as part of a broader recalibration of Washington’s economic partnerships amid global supply chain realignments.
According to diplomatic aides, the potential trade deal under discussion would roll back the 50% tariffs, expand market access for agricultural and energy exports, and strengthen bilateral investment protections. The pact could also include environmental cooperation clauses, particularly related to the Amazon and renewable energy development.
For Lula, the progress represents both a diplomatic and symbolic victory demonstrating Brazil’s capacity to re-engage with the U.S. on equal footing. “This is not just about tariffs,” he said. “It’s about restoring trust, respect, and the shared responsibility of our nations in leading the Western Hemisphere toward growth and stability.”
As Trump continues his high-profile Asia tour, the U.S. Brazil thaw adds a new dimension to his diplomatic outreach one that could redefine hemispheric relations as both nations look to balance domestic priorities with global partnerships.