Brazil Nearing Major Trade Agreement with United States, Says Lula

Updated by Faith Barbara N Ruhinda at 1300 EAT on Monday 27 October 2025

A trade deal between Brazil and the United States could be finalized within days, Brazilian President Luiz Inácio Lula da Silva has said.

Lula made the remarks in Kuala Lumpur on Monday following a meeting with US President Donald Trump. The Brazilian leader has been pushing for a new trade accord since the White House imposed a 50 percent tariff on Brazilian exports in July, a move reportedly linked to legal pressures surrounding Trump’s ally and former Brazilian president Jair Bolsonaro.

Following a “surprisingly good” meeting with US President Donald Trump on the sidelines of the ASEAN Summit on Sunday, Brazilian President Luiz Inácio Lula da Silva expressed optimism that a long-awaited trade deal between the two countries could soon be concluded.

“He guaranteed to me that we will reach an agreement,” Lula told reporters. “I am very confident that in a few days we will reach a solution.”

Trump later reinforced that optimism as he departed for Japan, describing his talks with Lula as “a great meeting” and suggesting that a deal was “very close.”

A trade agreement could help Brazil avoid punitive US tariffs after months of tension between Lula and Trump, whose relationship has reportedly warmed following an unscheduled meeting at the United Nations in New York earlier this month.

In July, the Trump administration imposed a 50 percent tariff on Brazilian products, linking the move to what the US president described as a “witch hunt” against former Brazilian President Jair Bolsonaro.

Lula said that during his meeting with Trump in Malaysia, he presented a document outlining Brazil’s arguments against the tariff increase. While the document recognized the US’s right to impose the measures, it argued that the decision had been based on “mistaken information,” the Brazilian president added.

In a separate interview with reporters, Brazil’s Foreign Minister Mauro Vieira described the meeting as “very positive” and “very productive.”

“The meeting was very positive, and the final outcome is excellent. President Trump stated that he will instruct his team to begin a process, a period of bilateral negotiations,” Vieira told Al Jazeera.

President Lula has previously called the US tariff a “mistake,” citing a $410 billion trade surplus the US has enjoyed with Brazil over the past 15 years.

He also emphasized that far-right political figure Jair Bolsonaro, who was sentenced to 27 years in prison for attempting a coup after losing the 2022 presidential election, had received a fair trial, and that his case should not influence ongoing trade negotiations between the two countries.

Invest or Donate towards HICGI New Agency Global Media Establishment – Watch video here