Brazilian President Luiz Inácio Lula da Silva said on Sunday that he had a productive meeting with U.S. President Donald Trump, and both sides agreed to begin immediate discussions on tariffs and other trade-related issues.

The two leaders met on the sidelines of the ASEAN summit in Kuala Lumpur, Malaysia, in an effort to ease tensions following Trump’s August decision to raise tariffs on most Brazilian exports to the U.S. from 10% to 50%. “We agreed that our teams will meet immediately to seek solutions regarding tariffs and sanctions against Brazilian officials,” Lula said in a social media post after the meeting.

Trump had previously linked the tariff hike to what he described as a “witch hunt” against former Brazilian President Jair Bolsonaro. The U.S. had also imposed sanctions on several Brazilian officials, including Supreme Court Justice Alexandre de Moraes, who oversaw Bolsonaro’s trial on charges of attempting a coup.

Before Sunday’s meeting, Trump indicated optimism about reaching an agreement with Lula, saying, “I think we should be able to make some pretty good deals for both countries.” Lula had earlier criticised the tariff increase, calling it a “mistake,” pointing out that the U.S. has maintained a $410 billion trade surplus with Brazil over the past 15 years.

Brazilian Foreign Minister Mauro Vieira confirmed that talks with the U.S. delegation — which included Treasury Secretary Scott Bessent, Secretary of State Marco Rubio, and Trade Representative Jamieson Greer — would begin immediately. “We will establish a negotiation schedule and define the sectors to be discussed so that we can move forward,” Vieira said, adding that Brazil had requested the suspension of tariffs during the negotiation process, though it was unclear whether Washington had agreed.

The U.S. tariffs have already disrupted the global beef trade, increasing prices domestically and pushing some exports to reroute through third countries such as Mexico, while Brazilian exports to China — its largest beef market — have surged.

Brazil’s beef industry association, Abiec, welcomed the meeting between Trump and Lula, saying the talks could help preserve Brazil’s export competitiveness and expand its beef market access in the United States.

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