In a significant diplomatic development, US President Donald Trump and Brazilian President Luiz Inacio Lula da Silva held a positive meeting on Sunday on the sidelines of the ASEAN summit in Kuala Lumpur, Malaysia . The encounter marks a concerted effort to thaw relations that have been frozen for months and to overcome tensions stemming from steep US tariffs on Brazilian goods . President Lula confirmed that their teams will begin working "immediately" to find solutions regarding the tariffs and associated sanctions against Brazilian authorities . This meeting follows a positive phone call between the two leaders earlier in October and technical trade talks held between their delegations .
The core of the recent bilateral friction dates to early August when the Trump administration increased tariffs on most Brazilian goods to 50%, up from a previous 10% . President Trump explicitly linked this punitive trade measure to what he termed a "witch hunt" against Brazil's former president, Jair Bolsonaro, a political ally who was later convicted and sentenced for attempting a coup after his election loss to Lula . The US government also imposed sanctions on several Brazilian officials, including Supreme Court Justice Alexandre de Moraes, who oversaw Bolsonaro's trial . Ahead of the Sunday meeting, President Lula had consistently described the tariff hike as a "mistake," arguing that the United States has enjoyed a massive trade surplus with Brazil over the past 15 years .
The face-to-face discussion between the two presidents has been characterized as a constructive step forward. President Trump expressed optimism ahead of the meeting, stating, "I think we should be able to make some pretty good deals for both countries" . Following the talks, Brazil's Foreign Minister, Mauro Vieira, provided further details, noting that negotiations would commence immediately with the goal of establishing a formal schedule and identifying key sectors for discussion . The Brazilian side has formally requested that the US suspend the tariffs for the duration of the negotiation process, though it remains unclear if the US has agreed to this proposal . Notably, officials confirmed that the contentious subject of former President Bolsonaro was not mentioned during the meeting .
The high US tariffs have already begun to dramatically reshape global trade flows, particularly in the beef sector. Brazil's beef exports to the US have collapsed, with imports plummeting by 80% and shipments to the US falling 41% year-to-date . However, Brazil's agricultural sector has demonstrated resilience, finding robust alternative markets. Exports to China, Brazil's largest beef market, have surged by 38%, helping to push the country's total beef exports to a record high of $9.6 billion in the first eight months of 2025 . This dynamic has also contributed to Brazil posting a higher-than-expected overall trade surplus . As both sides now work to normalize relations, the world will be watching to see if the positive dialogue can be translated into a durable trade agreement that satisfies both nations' economic and political interests.