In a surprising turn in international diplomacy, U.S. President Donald Trump has signaled a thaw in relations with Brazil, announcing plans to meet with Brazilian President Luiz Inácio Lula da Silva next week. The announcement, made during Trump’s speech at the United Nations General Assembly on September 24, 2025, comes after months of heightened tension between the two Western Hemisphere powerhouses.
According to multiple sources, including BNamericas and The New York Times, the move marks a significant shift in U.S. foreign policy toward Brazil. Trump described an impromptu encounter with Lula on the sidelines of the UN gathering, recounting, “I must tell you, I was walking in and the leader of Brazil was walking out. We saw him, and I saw him, he saw me, and we embraced.” He went on to add, “He [Lula] seems like a very nice man. He liked me, I liked him. I only do business with people I like. When I don’t like someone, I don’t like them. But for 39 seconds, we had excellent chemistry, and that’s a good sign.”
The handshake and brief embrace between the two leaders were all the more remarkable given the backdrop of recent diplomatic discord. Since August 2025, the U.S. government has imposed a 50% tariff on a range of Brazilian products. The Trump administration cited a litany of grievances: legal barriers faced by U.S. technology companies, alleged violations of freedom of expression in Brazil, foreign policy disagreements, and what it called economic threats to U.S. interests. Washington also accused the Brazilian government of persecuting and censoring former right-wing president Jair Bolsonaro and his supporters.
The tension escalated further when Brazil’s Supreme Court sentenced Bolsonaro to 27 years and three months in prison for acts related to the 2022 election, including what investigators allege was an attempted coup to block Lula’s inauguration. Bolsonaro, a close Trump ally, has consistently denied the charges. Trump, for his part, has used punitive economic measures and even sanctions on the Supreme Court justice overseeing Bolsonaro’s case as leverage to pressure Brazil into dropping the criminal proceedings.
Despite the fraught context, Trump’s overture to Lula took many by surprise. As reported by BNamericas, Brazilian business leaders welcomed the signs of rapprochement. Ricardo Alban, president of the Brazilian industries association CNI, expressed cautious optimism: “President Trump’s remarks, signaling openness to dialogue with President Lula, raise hopes that the two governments will start negotiations to revisit the heavy tariffs imposed by the United States. We know this will not be an easy task, but we are confident that through dialogue and diplomacy, Brazil can reverse this scenario. After all, Brazil and the U.S. have maintained a constructive relationship for over 200 years, with complementary economies.”
The format and exact timing of the Trump-Lula meeting remain uncertain. Brazilian officials have not confirmed whether the meeting will be in person or virtual, though some have suggested that an online format might help avoid any diplomatic discomfort or the risk of Trump issuing public criticism—a pattern observed in his recent meetings with other world leaders. Welber Barral, former foreign trade secretary of Brazil and now a partner at BMJ Consultores Associados, told BNamericas, “The handshake between Trump and Lula and the possibility of a first meeting were positive. This will be a deeper initial contact between Lula and Trump. I don’t expect major announcements from this first meeting, but rather an evaluation of the key issues both governments want to negotiate.”
Barral further explained that Lula is likely to bring up Brazil’s priorities, especially regarding trade and access to the U.S. market, but will stress that legal matters involving Bolsonaro are not negotiable by the federal government. “This meeting is a positive signal, but the Brazilian government is preparing for a long negotiation,” Barral added. He also predicted that tensions between the two leaders are unlikely during their initial meeting, in large part due to Lula’s extensive experience in international negotiations.
Still, Trump’s more conciliatory tone was tempered by pointed criticism of Brazil during his UN speech. He reiterated that the U.S. had imposed steep tariffs as a response to what he described as Brazil’s “unprecedented efforts” to undermine rights and freedoms through censorship, repression, political use of institutions, and judicial corruption. The dual approach—extending an olive branch while maintaining a tough stance on key issues—reflects the complexity of the current U.S.-Brazil relationship.
Meanwhile, Trump’s diplomacy in Latin America extended beyond Brazil. During the same week, he reinforced strong U.S. support for Argentine President Javier Milei. After meeting Milei in New York, Trump praised the Argentine leader’s reform agenda and leadership, writing on his social media platform, “The highly respected president of Argentina has proven to be a truly fantastic and powerful leader for the great Argentine people, moving forward at record speed in all areas.”
Milei, however, faces a challenging political landscape at home. His approval ratings have slumped amid a corruption scandal and a major electoral defeat in Buenos Aires province. The Peronist alliance Fuerza Patria won 47% of the vote in early September, compared to just 34% for Milei’s La Libertad Avanza. The setback threatens to undermine Milei’s mandate ahead of the October 26 midterm elections, which will renew about half of Argentina’s Congress and could complicate his efforts to push through fiscal and economic reforms through 2027.
Trump’s endorsement of Milei for a second term and his pledge of continued U.S. backing are seen as critical lifelines for the embattled Argentine leader. Argentine economist Roberto Troster told BNamericas, “U.S. support at this moment is critical because only with financial resources, likely to come from the U.S. Treasury, will Milei’s administration be able to continue pursuing its fiscal austerity agenda. Without financial support to shore up Argentina’s financial reserves, there is a risk that the government’s entire economic agenda could be undermined by financial market stress.”
As the world watches, the coming week’s anticipated meeting between Trump and Lula could set the tone for a new chapter in U.S.-Brazil relations. Whether the olive branch leads to substantive progress—or simply a photo opportunity—remains to be seen. But for now, both sides appear ready to talk, and that alone is a notable shift from months of diplomatic chill.