Lula and Trump agree to resume trade talks after 80-minute call on tariffs

High-level call on bilateral tariffs

Brazilian President Luiz Inacio Lula da Silva initiated a telephone call lasting one hour and 20 minutes with US President Donald Trump on Friday, 21 August 2026. The exchange was arranged to address bilateral trade friction following Washington's decision in July 2026 to impose two separate waves of import tariffs on Brazil. The United States placed the duties on Latin America's largest economy after citing alleged unfair commercial practices. The Brazilian presidency formally rejected those motivations as unfounded in an official release following the call. Both leaders, who are 80 years old, conducted the exchange in what Brasilia described as a friendly and cordial tone. Lula told his American counterpart that remaining at the negotiating table represents the best option for both nations.

Resumption of trade talks and ministerial meetings

The bilateral discussion concluded with an agreement between Brasilia and Washington to restart formal dialogue on trade and the contested import duties. Trump acknowledged the necessity of maintaining solid trade relations between the two countries and proposed that delegations meet again as soon as possible. Speaking later on Friday during an election campaign stop in the southeastern state of Minas Gerais, Lula confirmed that trade ministers from Brazil and the United States agreed on a date to convene. The Brazilian leader argued that the US surcharges generate adverse economic consequences for both Brazil and the United States rather than advancing bilateral cooperation.

Disagreement over criminal gang designations

Beyond the commercial dispute, the discussion covered differences regarding law enforcement and security policy. Lula reiterated his administration's refusal to categorize Brazil's two largest criminal factions as terrorist entities. The United States government officially designated the Comando Vermelho, known as CV, and the Primeiro Comando da Capital, known as PCC, as terrorist organizations in May 2026. Lula explained the reasoning behind Brazil's position during the call, maintaining a distinction between domestic organized crime syndicates and ideological terrorist groups.

These criminal groups exercise daily terror on the poorest populations, but they are not the same as terrorist organizations.

Campaign context ahead of Brazil's October election

The tariff dispute and relations with Washington have become central subjects in the campaign leading to Brazil's presidential election in October 2026. Lula is campaigning for a fourth and final presidential mandate while navigating diplomatic ties with the United States that have experienced alternating periods of alignment and tension. His primary challenger in the presidential contest is 45-year-old Flavio Bolsonaro, the son of former president Jair Bolsonaro, who is currently detained over an attempted coup d'etat. The Bolsonaro family maintains close ties with Trump. Lula previously accused the United States of attempting to interfere in the upcoming October presidential election. The scheduled ministerial talks create a direct diplomatic track on tariffs as Brazil approaches the vote.