Brazil and US Restart Bilateral Tariff Talks, Trump Hints "Promising"!

According to CCTV News, on October 26 local time, Brazilian President Lula stated that he held constructive talks with US President Trump in Kuala Lumpur, Malaysia, that day. Relevant teams from both countries will begin discussing tariffs and other issues "immediately."

As background, US President Trump signed an executive order on July 30, deciding to impose 50% tariffs on most Brazilian products exported to the US starting August 6, including key products like coffee, beef, and sugar. However, Brazilian exports of aircraft, nuts, orange juice, and some metal products were exempted. It is reported that the products subject to the additional tariffs account for about 57% of Brazil's total exports to the US.

Notably, unlike most countries targeted by the US "reciprocal tariffs," the US runs a trade surplus with Brazil, not a deficit. According to data from the US Trade Representative, in 2024, the total value of US-Brazil goods trade was approximately $92 billion, with the US having a trade surplus (with Brazil) of $7.4 billion.

Trump previously stated that part of the reason for the tariff increase was to "correct the grave unfairness (of Brazil's) current regime," particularly what he called the Brazilian government's "political persecution" of former President Bolsonaro. Bolsonaro is set to face trial later this year on charges of attempting to overthrow the Lula government after narrowly losing the 2022 election.

Bolsonaro served as President of Brazil from 2019 to 2022. Due to his political style and stances resembling Trump's, he was often called the "Trump of Brazil." During Bolsonaro's tenure, the two met on multiple occasions. Bolsonaro also repeatedly expressed his admiration for Trump.

According to Brazilian Foreign Minister Vieira, negotiations will begin immediately to seek a solution. He also noted that Lula and Trump reached a consensus during their talks to suspend the tariff imposition while Brazilian and US representatives are negotiating.