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Brazilian President Luiz Inácio Lula da Silva picked up the phone and did something that’s become increasingly rare in the current trade environment: he asked for a deal. In a 40-minute call with US President Donald Trump, Lula pressed for faster negotiations on tariffs still hitting Brazilian exports, while thanking Trump for recently lifting a punishing 40% surcharge on several agricultural products.
The tariff timeline
The call, which took place on December 2, 2025, came roughly two weeks after Trump ordered the removal of 40% supplemental tariffs on key Brazilian agricultural exports. That November 20 decision dropped the rate to 10%, still elevated but far less painful than the alternative.
To understand why Lula was in a thanking mood, rewind to July 2025. That’s when Trump fired off a letter threatening to slap tariffs as high as 50% on Brazilian imports. The trigger wasn’t soybeans or steel. It was the prosecution of former Brazilian President Jair Bolsonaro, a close Trump ally, and sanctions placed on Brazilian officials connected to those judicial proceedings.
By late 2025, cooler heads partially prevailed. Some tariffs were rolled back, but a baseline 10% rate remained in place across a broad swath of Brazilian goods. During the December call, Lula pushed for expedited negotiations to address even that remaining levy, arguing it still creates friction for Brazilian exporters trying to compete in American markets.
Politics and prosecution
What makes this trade dispute unusual is how openly it’s been linked to domestic Brazilian politics rather than traditional trade grievances. Trump’s July 2025 tariff threat was explicitly tied to the treatment of Bolsonaro, who has faced multiple legal proceedings in Brazil following his departure from office.
What was actually discussed
Beyond tariffs, the two leaders covered economic cooperation more broadly and discussed efforts to combat organized crime, an issue where US-Brazil collaboration has deep roots.
But tariffs dominated the agenda. Lula’s core ask was straightforward: speed up the process of negotiating down that remaining 10% rate. Brazil is the world’s largest exporter of soybeans, coffee, and sugar, and a top exporter of beef, poultry, and orange juice. Any tariff on these goods doesn’t just affect Brazilian producers. It ripples through global commodity markets and shows up in American grocery prices.
A thaw or a pause
Following US Trade Representative investigations into alleged unfair Brazilian trade practices, new 25% tariffs were introduced in July 2026 on many Brazilian imports. That suggests the trajectory, despite occasional moments of goodwill, has been toward more friction rather than less.
Both sides have signaled openness to further talks, but openness and agreement are very different things.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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