Donald Trump has held several constructive discussions with Brazilian President Luiz Inácio Lula da Silva, signalling renewed momentum toward improving US–Brazil trade relations after months of tension.
That is according to Jamieson Greer, the U.S. Trade Representative, who spoke at the Atlantic Council event this week, who said both governments appear increasingly open to advancing a potential trade agreement, though meaningful progress will still require concessions from each side.
The comments follow recent steps by the Trump administration to ease friction, including the removal of a 10% tariff on Brazilian pulp in mid-September, a crucial step in easing the pressure on US manufacturers and suppliers of tissue paper, including toilet paper and wet wipes.
Despite the progress, Washington continues to scrutinise Brazil’s trade practices.
In July, Wood Central reported that the Trump administration was considering imposing a 50% tariff on large volumes of pulp and softwood plywood amid concerns about illegal deforestation and regulatory issues.
Wood Central understands that the probe under Section 301 is still ongoing, with the U.S. Congress hearing that the findings of that report and potential impacts on trade with Brazil, the United States’ second-largest import market for pulp and softwood plywood, are not expected until sometime in 2026. Greer described Brazil as “both a challenging and essential partner,” noting that cooperation is necessary even when disagreements persist.
Trump and Lula recently discussed trade, economic cooperation, and joint efforts to combat organised crime during a phone call, with Lula expressing optimism that further tariff reductions could follow. Greer said Trump has also raised concerns about what he views as the politicisation of Brazil’s judicial system, a recurring point of friction between the two governments.
Lula, for his part, has insisted that Brazil will not accept external pressure on its domestic institutions. He has urged the United States to assist in the arrest of a Brazilian businessman living in Miami, whom he described as a major criminal figure. At the United Nations General Assembly earlier this year, Lula denounced foreign criticism of Brazil’s judiciary and reaffirmed that the country would not tolerate unilateral measures that undermine its sovereignty.
