Lula and Trump Establish Tariff Working Group as Brazil Positions Itself in US-China Rare Earth Competition
Primary region South America
Tags Trade · Economy · Energy · Diplomacy
Regions South America · US · BRICS
Brazilian President Lula met President Trump at the White House for three hours, establishing a bilateral working group to resolve tariff disputes within 30 days. The meeting's strategic centerpiece was rare earth minerals — Brazil holds the world's second-largest reserves at 21 million tons. Lula told Trump Brazil is open to investment from any country but insisted Brazil will not be a mere raw material exporter, wanting domestic processing and technology transfer. Brazil's Congress approved a critical minerals regulatory framework the day before the meeting. Both leaders avoided contentious issues including the PIX payment system and classification of Brazilian criminal factions as terrorist organizations.
Strategic interpretation
Lula's rare earth gambit positions Brazil as a swing player in US-China competition for critical mineral supply chains. By insisting on domestic processing and technology transfer rather than raw material extraction, Lula is leveraging Brazil's mineral wealth for industrial policy gains. The 30-day tariff working group gives both sides a face-saving mechanism to de-escalate, while Lula's repeated use of 'sovereignty' signals that Brazil won't be subordinate to either superpower.