Lula, Trump agree to resume tariff talks

Brazilian President Luiz Inacio Lula da Silva urged U.S. President Donald Trump in a phone call on Friday, August 21, 2026, to resolve a trade dispute between the two nations, arguing that recently imposed American tariffs are based on unfounded grounds. The conversation, which lasted 80 minutes, resulted in an agreement for officials from both governments to resume talks aimed at settling the conflict.

The call comes as the United States has imposed two new sets of tariffs on Brazil. A 25 percent tariff was placed on a range of Brazilian goods over policies Washington argues harm U.S. commerce, including concerns about deforestation and Brazil's PIX instant payment system. Additionally, a 12.5 percent tariff was applied under a separate global regime targeting nations accused of using forced labor. Brazilian data indicates Amazon deforestation fell last year to its lowest level since 2016. Lula has repeatedly stated his belief that the tariffs lack a factual basis and negatively affect both economies.

According to a statement from the Brazilian presidency, the discussion took place in a "friendly and cordial tone." Lula told Trump that remaining at the negotiating table is the...