Brazilian and US delegations shaking hands during tariff negotiations in a Kuala Lumpur conference room, with city skyline in background.
Brazilian and US delegations shaking hands during tariff negotiations in a Kuala Lumpur conference room, with city skyline in background.
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Brazil and US delegations start tariff negotiations in Kuala Lumpur

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Delegations from Brazil and the United States met in Kuala Lumpur, Malaysia, on Monday, October 27, 2025, to begin negotiations on the 50% tariffs imposed by the US on Brazilian products. The meeting follows the encounter between Presidents Lula and Donald Trump the previous day on the sidelines of the Asean summit. The parties agreed on a meeting schedule and plan a Brazilian visit to Washington in early November.

The technical meeting took place on the morning of October 27 in Kuala Lumpur, shortly after the encounter between Presidents Luiz Inácio Lula da Silva and Donald Trump on the sidelines of the Association of Southeast Asian Nations (Asean) summit. For Brazil, participants included Foreign Affairs Minister Mauro Vieira; MDIC Executive Secretary Márcio Rosa; and Ambassador Audo Faleiro from the Presidential Special Advisory. The US team was led by Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent.

According to an Itamaraty statement, the delegations began dialogue on the tariff measures adopted by the US. Vieira stated that the teams set a meeting schedule to discuss a satisfactory agreement, focusing on the most affected sectors. "In the meeting, we agreed to work to build a satisfactory agreement for both parties in the coming weeks," the chancellor said.

The Brazilian government plans to send a delegation to Washington in the first week of November, possibly led by Ministers Fernando Haddad (Finance), Geraldo Alckmin (MDIC), and Vieira himself, to learn the US demands, which have not yet been formally presented. Lula expressed optimism: "I am convinced that in a few days we will have a definitive solution." Trump praised the "great meeting" but was cautious: "I don't know if anything will happen, but we'll see. They would like to close a deal."

The 50% tariffs were imposed by the US in response to the trial of former President Jair Bolsonaro for an attempted coup, with sanctions on officials like Supreme Court Justice Alexandre de Moraes under the Magnitsky Act. Brazil is considering yielding on the 18% tariff on US ethanol imports in exchange for removing the additional 40% surcharges on Brazilian coffee and beef, sectors where the country is the main US supplier. Ethanol producers, especially in the Northeast, oppose the measure.

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Presidents Lula and Trump shaking hands at Asean summit in Kuala Lumpur, discussing US tariffs on Brazil.
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Lula and Trump plan meeting at Asean summit

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Presidents Luiz Inácio Lula da Silva and Donald Trump are set to meet on Sunday in Kuala Lumpur, Malaysia, at the Asean summit, to discuss US-imposed tariffs on Brazil. The meeting's organization involved Brazilian businessmen and diplomats, amid fears of American unpredictability. Lula expresses optimism for a solution without prior demands.

Brazil's trade deficit with the United States jumped from US$ 283 million in 2024 to US$ 7.5 billion in 2025, multiplying by 26 following tariff measures imposed by President Donald Trump. This marks the 17th consecutive year the goods flow favors Americans, with Brazilian exports dropping 6.6% and imports rising 11%. Brazilian officials attribute part of the impact to tariffs, but also to internal economic factors and reduced demand for oil.

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US President Donald Trump announced on Monday (12) a 25% tariff on commercial transactions with countries doing business with Iran, effective immediately and impacting Brazil, a key exporter of agricultural products to Tehran. The decision comes amid violent protests in Iran, with 648 deaths recorded since December 28, escalating geopolitical tensions. The Brazilian government is awaiting details of the executive order to respond.

South Korea's Industry Minister Kim Jung-kwan held a second day of tariff talks with U.S. Commerce Secretary Howard Lutnick in Washington on January 30, 2026, but again failed to reach an agreement. Following Friday's initial meeting—which also ended without a deal—the discussions deepened mutual understanding, though Kim said more talks are needed.

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The Republican-led Senate approved a resolution to terminate the national emergency President Donald Trump used to impose 50% tariffs on Brazil, passing 52-48 with five GOP votes. The measure, sponsored by Sen. Tim Kaine, is largely symbolic given a House procedural blockade and the prospect of a presidential veto, but it foreshadows more tariff votes and an upcoming Supreme Court test of Trump’s trade powers.

In response to the US Supreme Court's ruling striking down President Donald Trump's reciprocal tariffs, Cheong Wa Dae will hold a policy coordination meeting with the ruling party and government officials. The meeting, led by presidential chief of staff for policy Kim Yong-beom and National Security Adviser Wi Sung-lac, will include key ministers and the Democratic Party floor leader. The Trump administration imposed a 10 percent global tariff hours after the ruling and raised it to 15 percent the next day.

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The Mercosur summit in Foz do Iguaçu ended in disappointment after the EU confirmed a delay in signing the long-negotiated trade agreement with the bloc, originally set for Saturday (20). As covered earlier from the EU side, Italy's reservations prompted the postponement; Brazilian officials expressed frustration but see signing possible in January 2026.

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