US President Trump and Brazilian President Luiz Inacio Lula da Silva signaled a significant improvement in relations between their two countries during a 40-minute phone call on Tuesday. The conversation, described as "productive" by both leaders, touched on various topics including reducing trade barriers and tackling organized crime.
Trump expressed his willingness to work with Brazil to combat international organized crime, stating that Lula had assured him the Brazilian government would cooperate fully in addressing this issue. In a statement on Truth Social, Trump emphasized the importance of strengthening cooperation between their countries to combat organized crime, adding that he looked forward to speaking with Lula soon.
The phone call came after months of economic and political tensions between the US and Brazil. Tensions had been high following Trump's return to office, particularly over his close relationship with Brazil's former right-wing president Jair Bolsonaro. In February, a Brazilian attorney general filed charges against Bolsonaro for seeking to overturn election results that led to Lula's presidency.
Trump had threatened to hike tariffs on certain Brazilian exports to 50% if the case was not dropped, which went into effect in August. The US also imposed sanctions and visa restrictions on one of Brazil's Supreme Court members involved in the Bolsonaro investigation. However, in September, a turning point seemed to come when Lula and Trump shared a brief encounter at the United Nations General Assembly.
Trump announced he would peel back tariff hikes on certain Brazilian agricultural products, including coffee, cocoa, and beef, which was seen as a positive step towards improving relations. Lula praised the move but emphasized that there was more work to be done in negotiations between their countries.
The US is Brazil's second-largest trading partner, with bilateral trade reaching $127.6 billion in 2024. However, Brazil has a significant trade deficit with the US. The US exports nearly $91.5 billion to Brazil compared to just $36.1 billion in Brazilian exports to the US.
A key area of discussion during Tuesday's call was cooperation on organized crime. Trump has made combating Latin American cartels and gangs a priority since returning to office, including designating numerous groups as "foreign terrorist organizations." Lula himself has faced pressure to address crime ahead of his re-election bid in 2026.
While the phone call marked an improvement in relations between their countries, both leaders acknowledged that more work needs to be done.
Trump expressed his willingness to work with Brazil to combat international organized crime, stating that Lula had assured him the Brazilian government would cooperate fully in addressing this issue. In a statement on Truth Social, Trump emphasized the importance of strengthening cooperation between their countries to combat organized crime, adding that he looked forward to speaking with Lula soon.
The phone call came after months of economic and political tensions between the US and Brazil. Tensions had been high following Trump's return to office, particularly over his close relationship with Brazil's former right-wing president Jair Bolsonaro. In February, a Brazilian attorney general filed charges against Bolsonaro for seeking to overturn election results that led to Lula's presidency.
Trump had threatened to hike tariffs on certain Brazilian exports to 50% if the case was not dropped, which went into effect in August. The US also imposed sanctions and visa restrictions on one of Brazil's Supreme Court members involved in the Bolsonaro investigation. However, in September, a turning point seemed to come when Lula and Trump shared a brief encounter at the United Nations General Assembly.
Trump announced he would peel back tariff hikes on certain Brazilian agricultural products, including coffee, cocoa, and beef, which was seen as a positive step towards improving relations. Lula praised the move but emphasized that there was more work to be done in negotiations between their countries.
The US is Brazil's second-largest trading partner, with bilateral trade reaching $127.6 billion in 2024. However, Brazil has a significant trade deficit with the US. The US exports nearly $91.5 billion to Brazil compared to just $36.1 billion in Brazilian exports to the US.
A key area of discussion during Tuesday's call was cooperation on organized crime. Trump has made combating Latin American cartels and gangs a priority since returning to office, including designating numerous groups as "foreign terrorist organizations." Lula himself has faced pressure to address crime ahead of his re-election bid in 2026.
While the phone call marked an improvement in relations between their countries, both leaders acknowledged that more work needs to be done.