United States President Donald Trump and Brazil's President Luiz Inacio Lula da Silva convened on the sidelines of the Association of Southeast Asian Nations summit in Kuala Lumpur, Malaysia, on Sunday for a meeting described as positive and constructive.
The discussion addressed escalating trade frictions, particularly the recent hike in US tariffs on Brazilian imports from 10 percent to 50 percent imposed in August.
This measure, linked by Trump to perceived political persecution of former Brazilian President Jair Bolsonaro, has strained bilateral ties.
Lula characterized the encounter as great and announced that negotiating teams from both nations would commence work immediately to resolve the tariffs and related sanctions on Brazilian officials.
Ahead of the talks, Trump expressed optimism, stating, “I think we should be able to make some pretty good deals for both countries.”
Lula has previously labeled the tariff increase a mistake, pointing to a $410 billion US trade surplus with Brazil over the past 15 years.
Brazilian officials emphasized swift action, with Foreign Minister Mauro Vieira noting that a meeting with the US delegation was scheduled for Sunday to outline a negotiation timeline and targeted sectors.
Brazil requested a suspension of tariffs during discussions, though US agreement remains unclear.
Vieira added that the goal is to conclude bilateral negotiations addressing all affected sectors within weeks.
Notably, Bolsonaro's situation was not raised during the meeting, according to Marcio Rosa, executive secretary for Brazil's Foreign Ministry.
The elevated tariffs are already influencing global markets, notably the beef sector, where higher US prices have spurred rerouting through countries like Mexico, even as Brazilian shipments to China surge.
In September, Brazil's beef exports generated $1.92 billion, a 49 percent value increase year-over-year, with volumes up 17 percent to 373,867 metric tons.
Industry groups welcomed the development.
The Brazilian beef association ABIEC viewed it as a positive step to maintain competitiveness and expand market access in North America.
Similarly, the coffee industry group ABIC expressed optimism about the renewed partnership, given Brazil's status as the world's leading producer and exporter and the US as its primary importer.
Lula also extended an offer to mediate between the US and Venezuela amid escalating tensions there.
The meeting, attended by US Treasury Secretary Scott Bessent, Secretary of State Marco Rubio, and Trade Representative Jamieson Greer, underscores a commitment to dialogue despite underlying political divides.