Overview
- Brazilian President Luiz Inácio Lula da Silva and U.S. President Donald J. Trump spoke by phone on Friday to discuss tariffs and bilateral cooperation, with both leaders urging a rapid resumption of official meetings.
- The call came the same day the U.S. announced a 90-day increase in the amount of beef that can enter the United States without the higher out-of-quota tariff, a step aimed at boosting supply and lowering domestic beef and hamburger prices.
- Washington imposed new 25% and 12.5% tariffs on many Brazilian goods last month citing alleged lapses in forced-labor enforcement, a claim Brazil rejects and called harmful to both economies.
- Earlier this month Brazil formally sought consultations with U.S. trade authorities, a procedural step that could lead to retaliatory measures if talks fail, and Lula said he wants negotiations to resolve the dispute rather than unilateral moves.
- Lula also offered cooperation on organized crime during the call while objecting to U.S. labeling of some Brazilian criminal groups as terrorist organizations, a political friction point that complicates trade and security talks.