Lula and Trump Meet at White House, Agree to 30-Day Tariff Resolution Plan
Primary region South America
Tags Trade · Diplomacy · Economy
Regions South America · US
Brazilian President Luiz Inacio Lula da Silva and US President Donald Trump met at the White House on May 7, 2026 for talks lasting over three hours, agreeing to establish a bilateral working group with a 30-day deadline to resolve tariff disputes. The working group will be coordinated by Brazil's Minister of Development, Industry, Trade and Services and his US counterpart. Brazil called for closure of the US Section 301 trade investigation opened in 2025. Trump imposed 50% tariffs on Brazilian goods in 2025 over the Bolsonaro trial; most were later rolled back, but a 10% flat rate remains and expires in July 2026. Tensions persist over digital trade (Brazil blocked WTO e-commerce moratorium renewal), ethanol tariffs, and US allegations that nearly half of Brazil's timber exports are illegally sourced. Both leaders publicly praised the meeting, with Trump calling Lula 'a very dynamic president.'
Strategic interpretation
The meeting represents a pragmatic reset in US-Brazil relations after the tariff crisis of 2025, driven by Trump's desire for trade concessions ahead of the midterm elections and Lula's need to protect Brazilian exports. The 30-day deadline creates a tight window for resolution, and the Section 301 investigation remains a significant threat. The lack of agreement on a critical minerals MoU — despite expectations — suggests substantive gaps remain. Lula's domestic position is complicated by recent congressional setbacks, including the override of his veto on reducing Bolsonaro's prison time and the Senate's rejection of his Supreme Court nominee.