The call comes days after the U.S. slapped a 50% tariff rate on Brazilian goods, citing trade barriers and the judicial treatment of former President Jair Bolsonaro.
Brazilian President Luiz Inacio Lula da Silva has reportedly spoken with Chinese President Xi Jinping over a phone call to strengthen ties amid an ongoing trade dispute with the U.S.
According to a report by the South China Morning Post, during early Beijing hours, the two leaders talked about war in Ukraine, the role of BRICS and the G20 in defending multilateralism, and preparations for the COP30 climate summit, which Brazil will host in November.
Xi assured that China will send a “senior delegation” to the host city, Belem, and also agreed to deepen cooperation in health, energy, the digital economy, and satellite technology. According to the report, citing Brazilian officials, Lula also sought to use the call to ensure that trade links between the two countries remain stable despite broader uncertainty in global trade.
The call comes days after the U.S. slapped a 50% tariff rate on Brazilian goods, citing trade barriers and the judicial treatment of former President Jair Bolsonaro. Last week, Lula spoke with Indian Prime Minister Narendra Modi, whose country also faces steep 50% U.S. levies.
Earlier on Monday, Brazil Finance Minister Fernando Haddad said his virtual meeting with U.S. Treasury Secretary Scott Bessent had been scrapped after initially being scheduled for Wednesday, as per a Reuters report.
Retail sentiment on Stocktwits about iShares MSCI Brazil ETF (EWZ) was in the ‘neutral’ territory at the time of writing.
Beijing has already demonstrated its support for Brazil in the dispute. Last week, China’s Foreign Minister Wang Yi reportedly told Lula’s chief foreign policy adviser that Beijing opposed “unjustified external interference” in Brazilian affairs.
According to a report by the South China Morning Post, the call was requested by Lula and had been in preparation for several days. The Brazilian President proceeded with the call after consulting with senior ministers about the potential impact of the U.S. tariffs and the diplomatic message he wished to convey.
According to data from China’s General Administration of Customs, China’s total imports from Brazil in 2024 amounted to $116 billion, with the South American nation emerging as one of the handful of major economies to post a trade surplus with China. China primarily imports soybeans, iron ore, and oil from Brazil.
While tensions between Brazil and the U.S. mount, Trump has expressed his satisfaction with China and extended a tariff truce with the world’s second-largest economy for another 90 days on Monday.
The iShares MSCI Brazil ETF has risen nearly 24% this year, compared with a 7.9% rise of the SPDR S&P 500 ETF Trust.
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