International
Brazil's Lula visits Trump in Washington seeking to avert new US trade tariffs
Brazilian President Luiz Inacio Lula da Silva held talks at the White Houseon yesterday with US President Donald Trump that were expected to focus on trade, security and critical minerals as Lula looked to reset their rocky relationship. The meeting between the two leaders, which included bilateral discussions and lunch, broke up without a previously scheduled appearance with reporters. There was no immediate explanation for the change in schedule.
As Lula prepared to address reporters at the Brazilian embassy, Trump said in a social media post that his meeting with "the very dynamic president of Brazil" focused on many topics, chiefly tariffs.
"The meeting went very well. Our Representatives are scheduled to get together to discuss certain key elements," he said.
The meeting between Lula and Trump brought together two of the world’s most prominent populist figures despite their sharp ideological differences. Both leaders have built loyal political followings by positioning themselves against established elites, although they differ markedly on issues ranging from economic policy to international alliances.
Brazilian officials were hoping for the best to result from the meeting given tensions last year over Trump's tariff policy and his outrage over the trial and conviction of Brazilian ex-president Jair Bolsonaro.
"We don’t know if the visit will help,” one Brazilian official involved in arranging the meeting told Reuters. "But it’s more likely to help than doing nothing." Last year, Trump hit Brazilian products with 50% tariffs, among the highest on any US imports, accusing the country of promoting a witch-hunt against Bolsonaro, who was later convicted for attempting to overthrow democracy. Trump later withdrew most of the levies, including on Brazilian beef and coffee, at least in part to help calm rising US grocery prices. In February, the US Supreme Court struck down the global tariffs he imposed under a national emergencies law, eliminating many of the remaining levies. Brazilian products still face an extra 10% tariff due to expire in July. But, in recent weeks, Brazil has seen signs that its exports could be hit with fresh tariffs connected to a Section 301 investigation into unfair trade practices. Tensions remain over digital trade — as Brazil has blocked the US-backed renewal of a World Trade Organisation e-commerce tariff moratorium — and high Brazilian tariffs on some goods, including ethanol. The Office of the US Trade Representative last month also alleged that nearly half of Brazil’s timber exports come from illegal sources — which the Lula administration denies, arguing that it brought deforestation rates to historically low levels.
Brazilian officials became alarmed that a new wave of tariffs could be near during a meeting two weeks ago with US Commerce Department officials. US officials asked few questions, people in the talks said, reinforcing a perception that the investigation aimed to justify tariffs rather than resolve trade issues.
"What they are doing is building a case, even if unfounded, to justify the later adoption of tariffs,” one Brazilian official said.
A thaw started last September at the UN General Assembly, when Trump made a comment about "excellent chemistry", in part recognising Brazil's vast reserves of critical minerals, said Monica de Bolle, a Brazilian economist and senior fellow at the Peterson Institute of International Economics.
The Lula administration does not expect a critical minerals deal to materialise, people close to the president told Reuters, because officials struggled to agree on even a basic memorandum of understanding.