Brazilian President Luiz Inacio Lula da Silva and U.S. President Donald Trump agreed to meet in person following a friendly video call on Monday, raising hopes of improving relations strained by tariffs and political disputes.

The two leaders spoke for 30 minutes, reflecting on a brief encounter at last month’s United Nations General Assembly and exchanging phone numbers to maintain direct communication, according to Lula’s office.

Trump described the conversation as “very good,” focusing on trade and economic ties, and confirmed plans for future meetings in both countries.

Lula proposed an in-person meeting during the upcoming ASEAN summit in Malaysia and expressed willingness to visit the United States.

The talks come amid escalating trade tensions, with Trump raising tariffs on many Brazilian goods from 10% to 50% over the trial and conviction of former president Jair Bolsonaro, a move Bolsonaro labelled a “witch hunt.”

The tariff hikes have severely impacted Brazil’s exports, cutting coffee shipments to the U.S. by up to 70% and reducing beef exports, while driving up coffee prices for American consumers. Lula urged Trump to reverse the additional 40% tariff, according to the Brazilian statement.

Trump appointed Secretary of State Marco Rubio to continue negotiations with Brazilian officials, including Vice President Geraldo Alckmin and Finance Minister Fernando Haddad. The U.S. has also sanctioned Brazilian Supreme Court Justice Alexandre de Moraes under the Magnitsky Act and revoked visas of six senior officials, deepening the diplomatic rift.

At the U.N. last month, Lula criticised unilateral measures targeting Brazil’s institutions and economy, a veiled reference to Washington’s actions. Markets in Brazil are closely watching the outcome of the expected meeting, which could reshape the trade landscape between the two largest economies in North and South America.

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