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Brazil, U.S. discuss tariffs after Washington's 25% levy on Brazilian goods

Brazilian President Lula and former U.S. President Trump spoke by phone Friday to address U.S. tariffs on Brazilian imports. Brazil initiated consultations with Washington over the levies.

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Sophie Laurent · FX & Rates Desk · 22 Aug 2026 · 10:59 · 1 min read
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Brazil, U.S. discuss tariffs after Washington's 25% levy on Brazilian goods

Brazilian President Luiz Inacio Lula da Silva and former U.S. President Donald Trump discussed U.S. tariffs imposed on Brazilian goods during a phone call on Friday, Brazil's government said.

The U.S. government last month imposed 25% tariffs on some Brazilian imports, citing alleged unfair trade practices. Washington also maintained 12.5% tariffs on goods from dozens of countries, including Brazil, over concerns about enforcement of forced labor bans.

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Lula reiterated Brazil's position that negotiations remain the preferred method to resolve the dispute, while Trump proposed that officials from both countries meet promptly to address the issue. Brazil's government stated that Lula emphasized the potential economic harm the tariffs could inflict on both nations.

The U.S. allegations underpinning the tariffs include claims of unfair trade practices, lax enforcement of forced labor bans, deforestation concerns, intellectual property issues, corruption, Brazil's Pix instant payment system, ethanol policies, and imports allegedly linked to forced labor. Brazil has denied these claims as unfounded.

Earlier this month, Brazil initiated a process seeking further consultations with U.S. trade authorities, a step that could lead to countermeasures against Washington. Lula also reiterated Brazil's commitment to cooperating with the U.S. to combat organized crime, though he maintained that two criminal gangs operating in Brazil should not be classified as terrorist organizations. Washington applied this label to the gangs in May.

This article was produced with AI assistance and edited by a Finance Review Daily journalist.
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Written by
Sophie Laurent
FX & Rates Desk

Sophie covers currency markets and central bank policy across Europe, with a focus on how rate decisions ripple through FX pairs. She has been tracking the ECB's policy path since the start of the current easing cycle.

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