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Brazil, US to meet on tariffs after Lula-Trump call

Created at 24 Aug · 2:40 PM1 source↑ Market-relevant
IN SHORT

Brazilian and US representatives will meet this week to discuss US tariffs on Brazilian imports. The meeting follows a phone call between presidents Luiz Inacio Lula da Silva and Donald Trump, during which Lula called the tariffs "unfounded".

Key Numbers

25%US tariffs on Brazilian products

Who's Involved

Luiz Inacio Lula da Silva
President of Brazil
Donald Trump
President of the US
Jamieson Greer
US trade representative
Marcio Rosa
Brazil's trade minister
US Office of Trade Representative (USTR)
US agency imposing tariffs

↳ Why This Matters

The upcoming meeting between Brazil and the US on tariffs highlights ongoing trade tensions and the potential for resolution or escalation, impacting key commodity exports and bilateral economic relations.

Key facts

  • Brazil and the US will hold talks this week on US tariffs imposed on Brazilian imports in July.
  • The meeting follows a phone call between presidents Luiz Inacio Lula da Silva and Donald Trump.
  • Brazilian officials stated that Lula described the US tariffs as "unfounded" during his call with Trump.
  • Brazil's trade minister Marcio Rosa and representatives from the foreign affairs ministry will attend the meeting.
  • The US imposed the tariffs after a "Section 301" investigation into alleged unfair Brazilian trade practices, including issues with the ethanol market and the Pix digital payments system.

Brazilian and US representatives are scheduled to meet this week to discuss tariffs that the United States imposed on Brazilian imports in July. This meeting comes after a phone call last week between the presidents of both nations.

According to Brazilian officials, US trade representative Jamieson Greer initiated contact with the Brazilian government shortly after presidents Luiz Inacio Lula da Silva and Donald Trump spoke. During their conversation, Lula reportedly informed Trump that the US' 25% tariffs on Brazilian goods were "unfounded."

Brazil's trade minister Marcio Rosa, along with representatives from the foreign affairs ministry, will engage in discussions with the US Office of Trade Representative (USTR). While the Brazilian government confirmed the meeting, a specific date has not yet been disclosed.

The USTR's decision to impose these tariffs stemmed from a year-long "Section 301" investigation into what it deemed unfair Brazilian trade practices. Key reasons cited included a restrictive ethanol market, concerns regarding organized crime, corruption, deforestation, and perceived unfair competition arising from Brazil's digital payments system, Pix.

While a range of products, including pig iron, iron ore, rare-earth metals, crude oil, coffee, and beef, are exempt from these tariffs, other goods such as ethanol, sugar, and beef tallow are subject to them.

Frequently asked questions

The US imposed 25% tariffs on certain Brazilian products following a "Section 301" investigation into alleged unfair trade practices. Products like ethanol, sugar, and beef tallow are affected, while others like iron ore and coffee are exempt.

The tariffs were imposed after a year-long investigation citing a restrictive ethanol market, concerns over organized crime, corruption, deforestation, and unfair competition from Brazil's Pix digital payments system.

Brazil will be represented by its trade minister Marcio Rosa and representatives from the foreign affairs ministry. The US will be represented by its Office of Trade Representative (USTR).

What Happens Next

01Brazilian and US representatives to meet this week to discuss tariffs.

How It Developed

US trade representative Jamieson Greer contacted the Brazilian government after a call between presidents Luiz Inacio Lula da Silva and Donald Trump.
Lula told Trump that the US' 25% tariffs on Brazilian products were unfounded.
Brazilian trade minister Marcio Rosa and foreign affairs ministry representatives will meet with the US Office of Trade Representative this week.
The USTR imposed tariffs following a year-long investigation into unfair Brazilian trade practices, citing issues including ethanol market restrictions and competition from Brazil's Pix digital paymen

Sources

T1
Brazil, US to meet on tariffs after Lula-Trump callArgus Media

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