Lula and Trump: American says he can move quickly on revising tariff hikes and talks about making agreements

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SPECIAL ENVOY TO KUALA LUMPUR - President Luiz Inácio Lula da Silva (PT) praised the outcome of the meeting with US President Donald Trump. They met on Sunday afternoon, 26, in Malaysia (early morning in Brazil).

In a social media post, Lula stated that solutions to the tariff hike issue begin immediately. The Workers' Party member urged Trump to involve his team in discussions with a sense of urgency, after reiterating his call for a review of the tariff hike and sanctions against Brazilian officials. Trump made no immediate decision, but he did approve a ministerial-level meeting.

"I had a great meeting with President Trump this Sunday afternoon in Malaysia. We discussed the bilateral trade and economic agenda frankly and constructively. We agreed that our teams will meet immediately to advance the search for solutions to the tariffs and sanctions against Brazilian authorities," Lula reported.

During a meeting with Malaysian businesspeople, the president stated that he and Trump achieved what seemed “impossible.”

"President Trump had to travel 22 hours from the US to Malaysia, and I had to travel 22 hours to Malaysia. We managed to hold a meeting that seemed impossible in the US and Brazil here in Malaysia," he said at a forum for Brazilian and Malaysian businesspeople.

Lula also commented on Brazil's relations with other countries."We don't want a dispute that forces us to choose between siding with China or the US. We want to stand with China, the US, Malaysia, and all countries," the president stated, using rhetoric that advocates non-alignment with powers.

Before the conversation with Trump, Secretary of State Marco Rubio had said that it would be"beneficial for Brazil to make us its preferred trading partner instead of China, because of geography, culture and alignment in many aspects."

Shortly after the meeting, Foreign Minister Mauro Vieira said that a new meeting between representatives of the Brazilian and American governments will be held this Sunday.

According to the chancellor, Brazil is seeking a suspension of the tariff hike during the negotiations, a pause similar to that granted to other countries, such as China. A response to this request could be made at the next meeting, but the government is skeptical. The time and location have not yet been determined.

In the minister's assessment, the meeting between President Lula and President Donald Trump was positive. Besides taxation, the Brazilian president raised other issues. Lula offered to mediate on issues with Venezuela, argued that South America is a zone of peace, and cited the case of former President Jair Bolsonaro (PL) to assert that punishments for ministers are unjustified.

The meeting began at 3:30 p.m. local time at the Kuala Lumpur Convention Center (KLCC). The two governments confirmed that the talks would take place on the sidelines of the ASEAN (Association of Southeast Asian Nations) Leaders' Summit.

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During the meeting, Trump said they were open to"moving quickly" in this discussion about the tariff hike, but he was evasive when asked about the conditions that would make him reduce tariffs on Brazil:"We'll discuss it for a while and we'll probably come to a conclusion very quickly."

Estadão questioned whether Trump was concerned about Brazil's privileged relationship with China, the country's main trading partner and rival of the US, but Trump only said that he would meet with China later.

"I think we'll have a deal with China. I'm meeting with President Xi in South Korea. They want to make a deal, and we want to make a deal. We'll meet later in China and in the US at Mar-a-Lago, Palm Beach. We had many conversations before meeting, we had conversations with Brazil. I think we'll end up with a good deal for both countries, and that's what's going to happen with China. People seem to be very interested in China, and I think we'll have a very fair meeting with China."

Lula stated that he had a written agenda to deliver to Trump. He showed the folder and said he would leave a copy with the American.

The conversation with reporters took place before the discussion between them began. Apparently uncomfortable with the situation, the Workers' Party member asked for the press to be removed from the room so as not to waste negotiation time. Trump agreed and complained that the questions were boring.

Initially, only Lula and Trump, along with their direct advisors and interpreters, were to participate in the meeting. In room 410, Trump was accompanied by Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, and USTR Jamieson Greer. Lula was joined by Foreign Minister Mauro Vieira, Special Advisor Ambassador Audo Faleiro, and Executive Secretary Márcio Elias Rosa (MDIC).

Before the conversation, Trump had even said he could lower the 50% tariff on Brazilian exports under certain conditions. Lula said a comprehensive agreement might not be reached now.

U.S. Secretary of State Marco Rubio said that an agreement will still take some time to negotiate."We believe that, in the long run, it is beneficial for Brazil to make us its preferred trading partner instead of China—because of geography, because of culture, because of alignment in many aspects," Rubio said.

The statement reflects a deep-seated concern about Chinese influence in Latin America. If Trump decides to appeal and request a move away from Chinese projects, he's likely to hear a resounding"no way" from Lula, according to a Brazilian government strategist.

The US exerted this pressure on Argentina, seeking financial aid for the Javier Milei administration, and on Panama, threatening to regain control of the canal. But diplomacy is betting that Brazil's non-adherence to the New Silk Road could mitigate this.

"Obviously, we have some issues with Brazil, particularly how they've treated some of their judges, the digital sector in the United States, and individuals located in the United States through social media posts. We'll have to work on that as well. It's become a tangle in all of this. But the president will explore whether there are ways to overcome all of this, because we think it will be beneficial to do so. It will take some time," the US Secretary of State stated.