Brasília, October 6, 2025 — Brazilian President Luiz Inácio Lula da Silva has urged U.S. President Donald Trump to lift trade tariffs and economic sanctions affecting Brazilian exports, during what both governments described as a “frank and pragmatic” phone call on Monday.
According to a statement released by Brazil’s presidential palace, Lula pressed Trump to remove import duties on Brazilian steel, aluminum, and agricultural products that were reimposed earlier this year as part of Washington’s new “America First Economic Protection Strategy.” The Brazilian leader also called for the easing of secondary sanctions that have restricted access to U.S. financial markets for Brazilian companies doing business with Venezuela and Cuba.
“President Lula emphasized that Brazil seeks fair and balanced trade with the United States and cannot accept measures that penalize our industries or workers,” the statement read. “He reaffirmed his commitment to dialogue and cooperation but insisted that economic sovereignty must be respected.”
The White House confirmed the conversation but offered a more restrained account, saying President Trump reiterated his commitment to protecting American manufacturing jobs while expressing openness to continued discussions. “The presidents had a productive exchange on trade, energy, and hemispheric stability,” the statement said. “President Trump underscored the importance of ensuring that trade with Brazil remains fair, reciprocal, and beneficial to both nations.”
The call comes amid rising tension between Washington and Brasília following a series of U.S. trade restrictions imposed earlier this year. Trump’s administration reinstated tariffs of up to 25 percent on Brazilian steel and aluminum imports, citing national security concerns and alleged dumping practices. The move angered Brazilian industry leaders and prompted warnings from Lula’s government that retaliatory tariffs on U.S. agricultural products were under consideration.
Brazil’s Foreign Minister Mauro Vieira told Innovation Times that the two leaders agreed to continue negotiations through diplomatic channels. “The president was very clear that Brazil wants constructive relations but not at the cost of unfair trade barriers,” Vieira said. “We are hopeful that common ground can be reached to restore confidence and economic balance between our countries.”
Economists say the renewed tariffs threaten to slow trade between the two largest economies in the Western Hemisphere. Bilateral trade exceeded $120 billion in 2024, with Brazil exporting raw materials, soybeans, and manufactured goods while importing machinery, chemicals, and technology from the United States.
“Lula is trying to defend Brazil’s economic interests while maintaining a workable relationship with Trump,” said Dr. Fernanda Torres, a political economist at the University of São Paulo. “The challenge is that Trump’s trade strategy is deeply nationalistic, and he views tariffs as a tool for leverage rather than punishment.”
The two presidents also discussed cooperation in energy and environmental policy, including potential joint investments in biofuels and critical minerals. However, Lula reportedly warned that U.S. sanctions targeting companies with ties to Venezuela were harming regional trade and undermining Brazil’s economic diplomacy in South America.
“Brazil does not accept extraterritorial sanctions that damage our legitimate economic relations,” Lula told Trump during the call, according to an official familiar with the discussion. “We want to build bridges, not walls, in the Americas.”
In recent months, Lula has sought to position Brazil as a leader of the Global South, promoting multipolar cooperation and urging reform of global financial institutions. His latest outreach to Washington reflects a pragmatic attempt to balance relations with the United States, China, and Russia amid shifting global alliances.
Analysts say the outcome of the trade talks could shape the broader economic relationship between the two nations for years to come. “If Trump softens his stance, it could open the door to renewed energy partnerships and manufacturing investments,” said Diego Menendez, senior fellow at the Council on Hemispheric Affairs. “But if tensions escalate, Brazil may deepen its alignment with China, which already dominates its trade balance.”
For now, both sides appear committed to dialogue, but business leaders are watching closely. Brazil’s National Confederation of Industry warned that prolonged tariffs could lead to job losses and factory closures in export-dependent sectors. “Our competitiveness is at risk,” said the group in a statement. “The United States remains a crucial market for Brazilian goods, and both governments must find a fair resolution.”
The call between Lula and Trump marks the first direct contact between the two leaders since Trump’s return to office. Despite differences over trade and environmental policy, aides on both sides described the conversation as “cordial and forward-looking,” suggesting that talks will continue in the coming weeks.
