Thaw in relations? Lula meets Trump, claims definitive solution on Brazil-US trade within days

Brazilian President Lula da Silva exuded confidence on Monday that his country will reach a tariff deal with the United States (US). He said he met US President Donald Trump on Sunday and "had a very good impression at the meeting."

Lula met Trump at the Association of Southeast Asian Nations (ASEAN) on Sunday, after this month urging the US leader to lift punitive 50-percent trade tariffs.

Lula said he handed Trump a written agenda and highlighted the "need to increase the quality of products to the US and exports."

The Brazilian President said, "He [Trump assured me that we are going to have an agreement]".

"I respect Trump, he respects me," Lula said, adding that it is "difficult to continue with the sanctions. "We want to suspend tariffs," the Brazilian President said.

‘Brazil-US trade within days’

Speaking on the sidelines of the Association of Southeast Asian Nations meeting in Malaysia, Lula said, “I'm convinced that in a few days we'll have a definitive solution, you know, between the United States and Brazil, so that life can continue well and happily.”

Lula said he had a “surprisingly good” meeting with Trump and added, “The destiny was sealed — soon there will be no problem between the US and Brazil,” Lula told reporters Monday in Kuala Lumpur.

Lula spoke a day after he and Trump held a meeting on the sidelines of the summit, and hours after negotiators from Brazil and the US held a follow-up meeting to chart a path forward on trade.

The two leaders discussed Trump’s controversial new policy of using military strikes against boats his administration says are smuggling drugs from Venezuela.

The Brazilian president said he indicated a willingness to help with the issue, and told Trump to take into consideration his country’s “expertise,” while acknowledging the conversation didn’t delve deep into details.

Further talks will take place in Washington next week, Lula said, with an expected resolution within “days.”

What did Trump say?

Trump expressed optimism about a deal, saying during the Sunday meeting that the nations could “pretty quickly” strike a deal.

But LTrump didn’t indicate what he wanted from Brazil in an ultimate trade deal. Unlike many of Trump’s tariff targets, Brazil typically runs an annual trade deficit with the US, a point Lula stressed during their meeting.

US tariffs on Brazil

Brazil has faced 50 percent import duties on key exports for months as part of Trump’s efforts to stop the Supreme Court trial of his ally Jair Bolsonaro, which shook relations between the US and South America’s biggest economy.

In addition to the tariffs, the US imposed sanctions against several Brazilian officials, including a top Supreme Court judge, to punish Brazil for what Trump termed a "witch hunt" against his ally, far-right former president Jair Bolsonaro.

Asked by a reporter on Sunday whether Bolsonaro would form part of Trump's discussions with Lula, Trump replied: "None of your business."

Rare-earth minerals

Brazil also has the second-largest reserve of rare earths in the world after China, potentially giving the South American country a unique card to play.

Lula indicated a willingness to discuss opportunities to boost the development of the key minerals used in electric vehicles, advanced weapons systems and medical devices with various parties, including Trump.

(With inputs from agencies)