Washington: After a phone call with U.S. President Donald J. Trump, Brazilian President Luiz Inácio Lula da Silva expressed hope that the United States will soon roll back more tariffs imposed on Brazilian exports. The call, described by Lula as “extraordinary,” comes on the heels of the U.S. lifting additional duties last month on key Brazilian products such as coffee and beef.
“We are close to hearing good news from the U.S.” Lula told local media, signaling optimism that further reductions may be in the offing.
In July, the Trump administration had imposed steep additional tariffs in some cases up to 50% targeting a wide range of Brazilian exports. These measures, intended as punitive action connected to legal proceedings against former Brazilian President Jair Bolsonaro, triggered a wave of protest from Brasília and uncertainty among exporters.
Last month, however, Washington removed the added tariffs on selected items including coffee and beef, a preliminary de-escalation that has given Brazilian exporters a welcome reprieve.
During their discussion, Lula and Trump not only addressed trade tensions but also touched upon the fight against organized crime, agreeing on renewed U.S.–Brazil cooperation in this sphere.
This dual-track agenda easing trade barriers and strengthening security collaboration reflects both sides’ attempt to recalibrate relations, and has revived hopes of a more predictable economic environment for Brazilian exporters.
A fresh tariff rollback would help revive Brazil’s exports, especially agricultural and commodity products that were hit hard by the earlier duties. Many exporters and traders are watching closely, expecting announcements soon.
At a broader level, improved U.S.–Brazil trade relations could stabilize investor confidence, provide relief to sectors dependent on export demand, and ease the uncertainty that has clouded Brazil’s trade outlook in recent months.
While the easing is welcome, analysts warn that any further tariff reductions will likely be selective and conditional. Past volatility demonstrated how abruptly U.S. policy swings can unsettle emerging economies.
Moreover, broader global economic pressures rising interest rates, shifts in commodity demand continue to weigh on trade prospects beyond tariff policy alone.
For now, Brazil is striking an optimistic tone. Lula’s public statements suggest a willingness to restore stable trade ties with Washington, and perhaps re-energize sectors badly hit by the tariff shock.
Yet much depends on whether the U.S. delivers on its promise of deeper tariff relief and whether both nations follow through on agreements regarding trade and joint security cooperation.
What’s clear: Brazil’s exporters and trading communities are watching closely and the outcome of this evolving relationship may shape South America’s largest economy for years to come.