Brazilian President Luiz Inácio Lula da Silva picked up the phone and did something that’s become increasingly rare in the current trade environment: he asked for a deal. In a 40-minute call with US President Donald Trump, Lula pressed for faster negotiations on tariffs still hitting Brazilian exports, while thanking Trump for recently lifting a punishing 40% surcharge on several agricultural products.
The tariff timeline
The call, which took place on December 2, 2025, came roughly two weeks after Trump ordered the removal of 40% supplemental tariffs on key Brazilian agricultural exports. That November 20 decision dropped the rate to 10%, still elevated but far less painful than the alternative.
To understand why Lula was in a thanking mood, rewind to July 2025. That’s when Trump fired off a letter threatening to slap tariffs as high as 50% on Brazilian imports. The trigger wasn’t soybeans or steel. It was the prosecution of former Brazilian President Jair Bolsonaro, a close Trump ally, and sanctions placed on Brazilian officials connected to those judicial proceedings.
By late 2025, cooler heads partially prevailed. Some tariffs were rolled back, but a baseline 10% rate remained in place across a broad swath of Brazilian goods. During the December call, Lula pushed for expedited negotiations to address even that remaining levy, arguing it still creates friction for Brazilian exporters trying to compete in American markets.
