President Donald Trump spoke with Brazilian President Luiz Inácio Lula da Silva on Monday, the first significant conversation since the U.S. imposed 50% tariffs on Brazilian imports.
Trump-Lula Discuss Trade, Possible In-Person Meeting
The two leaders held a 30-minute video call, discussed meeting in person, and exchanged phone numbers, according to a statement from Lula's office.
Lula urged Trump to lift the tariffs and sanctions on Brazil, levied by the Trump administration in retaliation for what Trump saw as unfair treatment of far-right former Brazilian President Jair Bolsonaro.
Lula urged Trump to remove the additional 40% tariff on imports. Trump had raised tariffs on Brazil from 10% to 50%.
The call was described as “very good” by Trump, saying he expected the two countries “…will do very well together!”
The leaders also discussed the possibility of meeting at the upcoming Association of Southeast Asian Nations (ASEAN) summit in Malaysia, Lula’s office said, describing the call as “friendly.”
US-Brazil Trade Talks In Focus Amid High Coffee Prices
The strained relations between the U.S. and Brazil have been marked by tariff disputes.
Brazil, the world’s largest coffee supplier, was hit with a 50% U.S. import tax, causing exporters to redirect shipments to China’s growing café market. This shift was criticized by Sen. Elizabeth Warren (D-Mass.), who noted that Trump’s “chaotic tariff” policies led to a surge in coffee prices by over 20%.
Previously, Lula had expressed reluctance to reach out to Trump to negotiate the new tariffs, stating, “I won’t humiliate myself.” The recent video call and planned meeting could mark a significant shift in this stance.
Trump has assigned Secretary of State Marco Rubio to carry on tariff negotiations with Brazilian officials. The potential Lula-Trump meeting will be closely watched.
Starbucks Could Offset Brazil Tariffs With Minimal Price Hike, Says Analyst
Amid the surge in coffee prices, coffee giant Starbucks (NASDAQ:SBUX) declined 10.91% on a year-to-date basis. However, Bernstein's senior research analyst, Danilo Gargiulo, previously told CNBC that the coffee giant would only need to raise prices by up to 0.5% to completely offset the impact of Brazil tariffs.
Price Action: Some of the other stocks in focus, J.M. Smucker Co. (NYSE:SJM), Dutch Bros Inc. (NYSE:BROS), and Keurig Dr Pepper Inc. (NASDAQ:KDP) slumped 3.89%, 12.93% and 20.34%, respectively, year-to-date, as per data from Benzinga Pro.
READ MORE:
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
