Lula and Trump Agree to Restart Talks on US Tariffs

Brazil · TRADE

The two leaders spoke by phone on Friday, and both sides now want trade teams to meet soon.

Lula and Trump agreed to restart talks on US tariffs during a phone call on Friday 21 August 2026. The conversation lasted between about an hour and an hour and twenty minutes, according to reports.

What Lula and Trump Discussed

Lula and Trump spoke by phone on Friday 21 August 2026. The call lasted between about an hour and an hour and twenty minutes.

The conversation focused on US tariffs on Brazilian goods and on trade more broadly. Reports also mention organised crime and wider cooperation.

Lula Challenges Tariff Justification

During the call, Lula said the allegations used to justify the US tariffs were unfounded. He asked to resume negotiations.

A tariff is a tax a country charges on imports. A surcharge is an extra tariff added on top of the normal rate.

Trump Agrees to Meet Soon

Trump agreed that the two governments’ teams should meet as soon as possible. Both sides said they wanted to keep strong trade ties.

Brazilian sources say trade officials are expected to meet in the coming week. The meeting would involve Brazil’s trade minister and foreign ministry officials with US trade officials.

No Exact Date Yet

No exact date has been set for the trade meeting. However, both sides appear eager to move quickly.

Meanwhile, reports give different tariff levels on Brazilian goods. Some cite 25%, some 37.5%, and earlier 2025 coverage mentions 40% to 50%.

Substantial Surcharges Imposed

All reports agree that substantial surcharges were imposed before the August 2026 call. The exact rate remains unclear because sources disagree.

In fact, the disagreement over rates highlights the complexity of the trade dispute. Still, the surcharges have been a major point of tension.

Separate Criminal Group Dispute

Separately, on 29 and 30 May 2026, Lula publicly rejected the US designation of two Brazilian criminal groups as terrorist organisations. He called the designation interference and a slight to Brazilian sovereignty.

The groups are the PCC, the First Capital Command, a Brazilian criminal organisation,, Primeiro Comando da Capital, and Comando Vermelho. They are Brazil’s two largest criminal organisations.

Lula’s May Remarks

In May, Lula said the groups are terrorists for Brazilian communities but not the terrorists Trump imagines. This was a direct rejection of the US designation.

Although that dispute is separate from tariffs, it shows the broad range of issues between the two countries. Even so, the phone call on Friday covered multiple topics.

Trade Ties Remain Strong

Both Lula and Trump said they wanted to keep strong trade ties. This suggests a willingness to find common ground.

As a result, the upcoming trade meeting could ease tensions. After all, the two leaders have now agreed to restart talks.

What Comes Next for Lula and Trump

The next step is for trade officials to meet, likely in the coming week. However, no exact date has been set.

Overall, the phone call marks a positive turn after months of tariff friction. In short, Lula and Trump have opened a new channel for negotiation.

More: Brazil news in English, every day from The Rio Times.

Frequently Asked Questions

When did Lula and Trump speak about tariffs?

They spoke by phone on Friday 21 August 2026. The call lasted between about an hour and an hour and twenty minutes.

What did Lula say about the tariffs?

Lula said the allegations used to justify the US tariffs were unfounded. He asked to resume negotiations.

What did Trump agree to do?

Trump agreed that the two governments’ teams should meet as soon as possible. Both sides said they wanted to keep strong trade ties.

When will trade officials meet?

Brazilian sources say trade officials are expected to meet in the coming week. However, no exact date has been set.

Sources: Brazilian presidency; Bloomberg; Reuters.