Trump predicts ‘pretty good deals’ with Brazil in Lula meeting

Conversations between Brazil and the US resumed last month after Trump and Lula briefly crossed paths at the UNGA in New York, paving the way for a resumption of high-level talks after a period of frozen relations.

President Donald Trump said he believed he would strike a trade deal with Brazil as he met with counterpart Luiz Inacio Lula da Silva on Sunday.

Trump said the pair “get along very well” and that his officials, including Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, would work to negotiate an agreement and predicted a “conclusion pretty quickly.”

“We should be able to make some pretty good deals for both countries,” Trump said as the leaders met in Malaysia, which is hosting a regional summit.

Lula said he thought that he could announce “good news.”

“There’s no reason for having any kind of conflict” between Brazil and the US, Lula said, adding that he had prepared a written agenda in English to discuss with the US president. He later sought to cut off questions from the press, saying time for the meeting was limited.

The meeting was the first official sitdown between Trump and Lula, as the Brazilian president is known. It was also the first extended interaction between them since relations sharply deteriorated following Trump’s July announcement to slap punitive tariffs on imports from Latin America’s largest economy.

The meeting is part of a push by the Brazilian government to resolve the monthslong trade spat after Trump unsuccessfully sought to stop the Supreme Court trial of his right-wing ally Jair Bolsonaro. At the time, Trump ordered 50% tariffs on key Brazilian exports like coffee and meat, and US officials later applied other sanctions and visa restrictions on judges, officials and their families.

Trump told reporters on Sunday he felt “very badly” about Bolsonaro’s fate but told a reporters it was “none of your business” when asked if the issue would be part of the talks.

Conversations between Brazil and the US resumed last month after Trump and Lula briefly crossed paths at the United Nations General Assembly in New York, paving the way for a resumption of high-level talks after a period of frozen relations.

Talking Points

In addition to tariffs and sanctions, Brazil’s main focus has been on clearing the air on trade practices that have been the target of an investigation by the Office of the US Trade Representative, including the regulation of US-based social media companies operating in the country and ethanol industry policies.

While Brazil’s approach has been to wait for the Trump administration to outline its demands before putting its own proposals on the table, Brasilia has been working to prepare background materials on an array of themes that could be relevant to the talks, including social media regulation, data centers and critical minerals.

Brazil has the second-largest reserve of rare earths in the world after China, potentially giving the South American country a unique card to play. Lula has indicated a willingness to discuss opportunities to boost the development of the key minerals used in electric vehicles, advanced weapons systems and medical devices with various parties, including Trump.

Venezuela is also among the topics that could be raised between the two leaders. The US has struck down multiple boats it says were carrying drugs from Venezuela in recent months, prompting speculation that it may be preparing to attack the country on land. Though Brazil has avoided any direct involvement, Lula had previously told Trump in a phone call that a military conflict in South America would be devastating for the region.

Trump said he would be willing to discuss Venezuela if Lula wanted to but that he didn’t anticipate doing so.