Brazil tariffs: Lula urges Trump to resolve dispute

Brazilian President Luiz Inacio da Silva urged US President Donald Trump in a Friday phone call to resolve a trade dispute over US tariffs, Lula's office said, as the issue became a campaign theme ahead of Brazil's October presidential election.

The Brazilian presidency said Lula told Trump the tariffs were imposed on “baseless” grounds and harmed both Brazil and the United States. It said the conversation lasted one hour and 20 minutes and took place in a friendly and cordial tone.

Lula said staying at the negotiating table was the best option for both countries, according to the presidency.

Washington imposed two new sets of tariffs on Brazil in July. One was a 25 percent tariff on a range of Brazilian goods over policies the United States argued harm US commerce, including deforestation and Brazil's free electronic payments system known as PIX. Brazil was also affected by a separate global tariff regime against US trading partners accused of using forced labor.

Brazilian data show deforestation in the Amazon fell last year to its lowest point since 2016.

Lula, 80, is seeking a fourth and final term in office and has made national sovereignty a central campaign theme. Trump is an ally of Brazil's jailed far-right former president Jair Bolsonaro, whose son Flavio Bolsonaro is Lula's main rival in the election.

The Brazilian presidency said Lula also objected in the call to the US designation of Brazil's two largest drug cartels as terrorist organizations. Lula told Trump that the groups “inflict daily terror on the most vulnerable populations” but are not the same as terrorist organizations.

The designation came two days after a May visit by Flavio Bolsonaro to the White House. Flavio has said it was a personal request.

Lula has repeatedly said he believes US Secretary of State Marco Rubio, not Trump, was behind the tariffs against Brazil. In an interview last week, Lula warned Trump not to meddle in Brazil's affairs, especially the election.