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.

The meeting between Lula and Trump is expected for the late afternoon local time on Sunday in Malaysia, equivalent to early morning on October 26 in Brazil, though it does not appear on the Brazilian president's official agenda. The encounter takes place on the sidelines of the Association of Southeast Asian Nations (Asean) summit, where both attend as guests. Key topics include the 50% tariffs imposed by the US on Brazilian products, such as ferro-nickel, cellulose, and wood, and measures like the Magnitsky Act against Minister Alexandre de Moraes.

Arrangements for the meeting began with a teleconference in early October, when Lula requested the removal of the 'tariff hike.' A brief contact occurred at the UN General Assembly in New York, where Trump mentioned 'chemistry' between them. Businessmen like Joesley Batista of JBS met with Trump to discuss impacts on the meat sector, while Embraer representatives also assisted. Vice President Geraldo Alckmin spoke with US Commerce Secretary Howard Lutnick about the tariffs.

The Brazilian government chose a third country to avoid a potential 'ambush' in Washington, fearing Trump's unpredictability. Lula travels with about 100 businessmen to seek new markets and reduce US dependence. In Jakarta, Indonesia, his first stop, Lula stated: 'We can discuss from Gaza to Ukraine, to Russia, to Venezuela, to critical materials, to minerals, to rare earths. We can discuss any issue'.

Trump indicated he could lower tariffs 'under the right circumstances.' Lula reiterated: 'I work with optimism so that we can find a solution. There is no demand from him and no demand from me yet.' Alckmin, as the main negotiator, highlighted Brazil's low tariffs on the US – an average of 2.7%, zero on eight of the top ten exported products – and opportunities in data centers, rare earths, and renewable energy. The vice president sees 'an avenue ahead' for partnerships, citing 200 years of bilateral relations.

US Secretary of State Marco Rubio stated: 'We believe that, in the long term, it is beneficial for Brazil to make the United States its preferred trade partner instead of China.' Brazil does not expect immediate results but views the meeting as a boost for negotiations. Possible discussions include a US military incursion in Venezuela, which the Brazilian government considers destabilizing for South America.

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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.

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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The top diplomats of South Korea and the United States will hold talks in Washington this week amid uncertainties over their trade deal following U.S. President Donald Trump's warning of a tariff hike. Foreign Minister Cho Hyun will meet one-on-one with U.S. Secretary of State Marco Rubio to discuss implementing summit agreements, including the trade deal. Cho is also attending a U.S.-led ministerial meeting on critical minerals supply chains.

Following Mexico's Senate approval of tariffs on Asian imports, Brazil has voiced concerns about potential disruptions to bilateral trade outside the protected automotive sector, urging dialogue to safeguard exports and investments.

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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.

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