Brazil’s President Slams U.S. Tariffs as “Baseless,” Confirms Continued Negotiations in Call with Trump — BigGo Finance

Brazilian President Luiz Inácio Lula da Silva held a phone call with U.S. President Donald Trump on the 21st to discuss the tariff measures the United States has imposed on Brazil. Lula criticized the justifications cited for the tariffs—including deforestation and rampant corruption—as “baseless” and called for a negotiated resolution. Trump signaled a willingness to continue dialogue, proposing that officials from both countries hold early consultations.

According to a statement from the Brazilian Presidential Palace, the call lasted 80 minutes and was conducted in a “friendly and sincere atmosphere.” Lula stated that “the tariffs have negative effects on both Brazil and the United States,” emphasizing that “remaining at the negotiating table is the best option for both countries.”

The U.S. Trade Representative (USTR) announced in July that, as a final measure under Section 301 of the Trade Act, it would impose 25% tariffs on certain Brazilian products. Additionally, citing insufficient import bans on goods produced with forced labor, the U.S. activated an additional 12.5% tariff on imports from dozens of countries, including Brazil. The U.S. side has cited deforestation, rampant corruption, and the existence of the free electronic payment system “PIX” as reasons for the tariffs.

According to Brazilian government data, Amazon deforestation fell last year to its lowest level since 2016. Brazil has previously called the U.S. tariff measures “unjustified” and has requested consultations with the United States under the World Trade Organization (WTO) dispute settlement system.

Rising Tensions Ahead of Presidential Election

The tariff issue has become a central point of contention in Brazil’s presidential election scheduled for October. Lula (80), who is seeking a fourth term, has made national sovereignty a key campaign theme. In an interview last week, he warned Trump: “Do not interfere in Brazil’s internal affairs, especially the election. If you interfere, you will lose.”

Trump has supported multiple right-wing candidates in recent Latin American elections. In Brazil, Flávio Bolsonaro—a key ally of imprisoned far-right former President Jair Bolsonaro and his son, who is a major contender in the election—visited the White House in May. Two days later, the U.S. designated Brazil’s two largest drug cartels as terrorist organizations. Flávio has stated that this designation came at his request.

Lula also challenged Trump on this designation, telling him that “these criminal organizations terrorize the most vulnerable people daily, but they are not the same as terrorist organizations.” Opinion polls show that public security is the top concern for Brazilian voters in this year’s election. Flávio has been promoting a hardline crime-fighting model similar to that of El Salvador’s President Nayib Bukele.

A Complex Relationship in the Background

The relationship between the Trump administration and the left-leaning Lula administration has alternated between warm and cold in recent months. Trump praised his “excellent chemistry” with Lula last year. The U.S. had previously lifted sanction tariffs related to Jair Bolsonaro’s trial last year, following diplomatic efforts by the Lula administration. Trump had called that trial a “witch hunt.”

On the other hand, Lula has repeatedly expressed the view that it is not Trump but U.S. Secretary of State Marco Rubio who is behind the tariff measures. In last week’s interview, he said, “Trump is the best among them, the person who talks to me most seriously.”

Suspicion has been growing within Brazil that the United States is aiming to bring about a pro-American right-wing government in Brazil’s October presidential election and is plotting election interference. The phone call took place amid such tensions. Trump reportedly proposed that officials from both countries meet soon in response to Lula’s call for continued negotiations.

According to the Brazilian government’s announcement, Lula argued that the allegations the U.S. has cited as justification for the tariffs are without foundation. The specific agreements reached during the call have not been disclosed, but the two leaders appear to have agreed to maintain open channels of communication.

Lula expressed a clear understanding of the impact the tariff measures have on both economies. The United States is one of Brazil’s major trading partners, and the 25% additional tariff deals a significant blow to export industries. On the U.S. side, higher tariffs on imports from Brazil could also affect domestic supply chains and consumer prices.

The focus now shifts to when and at what level the official consultations proposed by Trump will take place. As the election campaign intensifies, progress on the tariff issue with the United States could become a critical factor influencing the election outcome for the Lula administration.