- The Brazilian President revealed that further talks will take place in Washington, with an expected resolution within “days,” according to a report.
- In July, Trump imposed 50% tariffs on Brazil due to the trial of former President Jair Bolsonaro over plotting a coup.
- Lula said that he is open to discussing any issues with Trump and will also assist the U.S. on Venezuela.
Brazil’s President Luiz Inacio Lula da Silva reportedly said on Monday that U.S. President Donald Trump had “guaranteed” that the two countries would reach a trade deal during their recent meeting.
According to a Reuters News report, Lula said at a briefing on the sidelines of the ASEAN summit in Malaysia that his conversations with Trump have been largely positive and that an agreement would be reached “faster than anyone thinks.”
Why Is Brazil Facing Higher Tariffs?
In July, Trump imposed 50% tariffs on Brazil, one of the highest any country currently faces, due to the trial of former President Jair Bolsonaro over plotting a coup, which the Republican President has dubbed a ‘witch hunt.’ In a letter sent to Lula, Trump also attacked Brazil, claiming that U.S. companies have been victims of unfair trade practices.
The levies came as a surprise to many, as Brazil is one of the few countries with which the U.S. has a trade surplus. However, products such as oranges and Embraer aircraft, among the top exports to the U.S., were exempted.
Embraer warned that it might face order cancellations and delays if Trump’s punitive tariffs are implemented. “We don’t have any cancellation issues at this point in time, but mid-term, this might happen,” CEO Francisco Gomes Neto said in an interview with Bloomberg Television’s Haslinda Amin on Sunday.
What Did Lula Say?
Lula stated on Monday that recent U.S. decisions against Brazil were “incorrect”. However, he added that he is open to discussing any issues with Trump and will also assist the U.S. on Venezuela.
“I told him that it was extremely important to take into account Brazil’s experience as the largest country in South America, as the most economically important country that has almost all of South America as a neighbor,” Lula reportedly said.
The Brazilian President also revealed that further talks will take place in Washington, with an expected resolution within “days,” according to a Bloomberg report.
What Is Retail Thinking?
Retail sentiment on Stocktwits about the iShares MSCI Brazil ETF (EWZ) was in the ‘bearish’ territory at the time of writing.
The EWZ ETF has gained nearly 37% this year, compared with the SPDR S&P 500 ETF Trust’s 14.9% gain.
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