Mon Oct 27 09:00:00 UTC 2025: ## US and Brazil Poised to Resolve Tariff Dispute “In Days,” Leaders Say

Kuala Lumpur, Malaysia – A potential trade deal between the United States and Brazil is within reach, according to both Brazilian President Luiz Inacio Lula da Silva and US President Donald Trump, following a meeting on the sidelines of the ASEAN summit in Kuala Lumpur. The optimistic outlook comes after months of strained relations stemming from the US imposition of a 50% tariff on Brazilian exports in July, a move Trump linked to legal pressure on his ally and former Brazilian President Jair Bolsonaro.

President Lula, speaking at a press conference Monday, described his meeting with Trump as “surprisingly good” and relayed the US president’s assurance that a resolution is imminent. “He guaranteed to me that we will reach an agreement,” Lula stated, expressing his confidence that “in a few days we will reach a solution.”

President Trump echoed this sentiment as he departed for Japan, telling reporters that the meeting was “great” and that “They’d like to do a deal. We’ll see what happens.”

The US implemented the tariffs in July, citing concerns over the perceived “witch hunt” against Bolsonaro, who is currently facing legal challenges in Brazil. Lula presented Trump with a document arguing against the tariff hike, asserting that while the US had the right to impose such measures, the decision was based on “mistaken information.”

During the meeting, Trump reportedly did not commit to suspending the tariffs, but neither did he raise any additional conditions. This has led Lula to believe a swift resolution is possible, allowing for a return to amicable trade relations between the two nations.

Brazilian Foreign Minister Mauro Vieira described the meeting as “very positive” and “very productive,” adding that Trump pledged to instruct his team to begin bilateral negotiations.

Lula has previously criticized the tariffs as a “mistake,” pointing out the US enjoys a significant $410 billion trade surplus with Brazil over the past 15 years. He also emphasized that Bolsonaro’s conviction and 27-year prison sentence for attempting a coup should not influence trade negotiations, stating, “Bolsonaro is part of the past now in Brazilian history.”

If a deal is reached, it would mark a significant diplomatic achievement and potentially avert further economic tensions between the US and Brazil.

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