Brazil resumes trade negotiations with the United States on Monday (31) with aides to President Luiz Inácio Lula da Silva skeptical that a deal can be reached. They fear the tariff offensive may become permanent if the standoff drags on, according to the newspaper Folha de S.Paulo.
The round of talks will be held virtually, around 2:30 p.m. in Brasília, between Development, Industry, Trade and Services Minister Márcio Elias Rosa and Jamieson Greer of the Office of the United States Trade Representative. The ministry confirmed the meeting after Lula and Donald Trump spoke by phone on Friday (21), when the two presidents agreed on the need to resume dialogue, the outlet Brasil de Fato reports.
The precedent that worries Brasília
A government official told Folha that the trade barriers on steel and aluminum were imposed in 2018, during Trump's first term, and that his successor, Joe Biden, did nothing to revoke them. Part of the government fears the same fate for the 25 percent surcharge Washington applied citing Brazilian trade practices it calls unfair.
In July, the United States imposed additional surcharges of 25 percent and 12.5 percent on portions of Brazilian imports. The combined measures reach 23.1 percent of Brazil's exports to the American market, according to Brasil de Fato. Brazil has taken the dispute to the World Trade Organization and is weighing reciprocity measures. Even so, Rosa argues that negotiation should come first.
The phone call and the election
The August 21 call unfroze the relationship, in the assessment of a member of Lula's team. He told Folha the conversation led White House officials to reach out to the presidential palace, and that without it only a proposal favoring the United States would have unlocked the talks. The call was again facilitated by major businessmen with direct access to Trump's cabinet. In 2025, Folha reported that Joesley Batista, owner of meatpacker JBS, played a key role in arranging the meeting between the two presidents.
Aides say Lula has asked that Brazil stay at the negotiating table and try to close a deal. The view that constant friction with Trump helps Lula with voters is not a consensus inside the government. Some advisers believe an economic understanding would strengthen the president politically, though expectations of any agreement before October's presidential election, in which Lula is running for another term, are low. Monday's meeting is technical and will not include the presidents. The next steps depend on the talks between Rosa and Greer.