Will Trump lower tariffs on Brazilian footwear?
During the meeting between Lula and Trump, held in Kuala Lumpur, Malaysia, on Sunday, October 26, within the framework of the 47th Summit of the Association of Southeast Asian Nations (ASEAN), new prospects emerged for bilateral trade between Brazil and the United States.
The meeting lasted about 50 minutes and was described as very positive by officials from both countries.
Given Trump's imposition of high tariffs on Brazilian products entering the US market, which generated tension between the two governments, plus the political component, where the US president questioned the trial of former president Jair Bolsonaro, difficulties arose that created a hostile climate between the two governments.
Apparently, the meeting between both leaders eased tensions, suggesting the beginning of a more rational and mutually beneficial stage of negotiations.
During the meeting, Lula stated there were no reasons for disagreement with the United States and requested that Trump immediately suspend the tariff increase on Brazilian exports while both countries continued negotiations. In July of this year, Trump had announced a 50% rise in tariffs on all Brazilian goods exported to the U.S. Later, the American administration also imposed visa revocations and other sanctions on Brazilian government ministers and Supreme Federal Court (STF) members.
Brazil’s Minister of Foreign Affairs, Mauro Vieira, told the press after the meeting that Trump had authorized his team to begin negotiations to review the tariff increase on Sunday night, Malaysia time, 11 hours ahead of Brazil.
"The meeting was very positive and the final result is excellent. President Trump stated that he will instruct his team to begin a process, a period of bilateral negotiations, which should begin today, as it is expected that everything will be resolved quickly," the foreign minister declared.
"Brazil is interested in maintaining an extraordinary relationship with the United States. There is no reason for disagreements between Brazil and the United States, because we are certain that when two presidents sit down at the table, each presenting their point of view, each presenting their problems, the natural tendency is to move towards an agreement," President Lula stated.
According to Minister Vieira, the two presidents had a relaxed conversation, and Trump expressed admiration for Lula’s political trajectory.
"Trump expressed his admiration for the political career of President Lula, who was twice President of the Republic, was persecuted in Brazil, recovered, proved his innocence, returned to the presidency and obtained a successful third term," he declared.
The foreign minister also confirmed Trump’s intention to visit Brazil, though no date has been set yet.
“President Lula also accepted and said he would be pleased to visit the United States. Trump emphasized his admiration for Brazil and great respect for the Brazilian people,” he commented.
The news of the Lula-Trump meeting has had a major impact on Brazil’s footwear sector, especially given the possibility of reviewing and modifying the tariffs applied to Brazilian footwear to their main destination market. The tariff measures implemented by the U.S. government since July caused severe consequences for the Brazilian footwear industry's export sector, leading to a significant drop in exports, reduced production levels, and job losses.
This situation forced the Brazilian government to introduce various tax and financial relief measures to sustain its activity.
Expectations are now rising, and there is optimism about a definitive and favorable solution for both sides.
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