Brazilian President Luiz Inácio Lula da Silva plans to discuss cooperation on fighting organized crime and tariffs with U.S. President Donald Trump, Brazil’s finance minister Dario Durigan said Wednesday, one day ahead of their scheduled meeting at the White House.
Constructive Dialogue Ahead
“The goal is to protect Brazil’s population, prioritize the country and maintain constructive dialogue,” Durigan told state broadcaster EBC. “Expectations for the trip are very positive.”
The encounter follows a crisis in bilateral relations last year after the Trump administration imposed a 50% tariff on Brazilian goods, tying the measure to the prosecution of former President Jair Bolsonaro for his involvement in a coup plot. Lula sharply defended Brazil's sovereignty, and Trump later loosened tariffs on Brazil as part of efforts to lower consumer costs for Americans.
Mending Fences
Trump and Lula began mending fences at the United Nations General Assembly in September, followed by their first private meeting in Malaysia in October and subsequent phone conversations.
Brazil’s handling of the 50% tariff likely increased the country’s leverage with the Trump administration, said Ana Garcia, an international relations professor at the Rural Federal University of Rio de Janeiro. “The Trump administration likely sees Brazil as a partner that must be taken somewhat seriously, but will continue to pressure it to make concessions,” Garcia said.
Contentious Issues
A key point of contention is the Trump administration’s reported consideration of designating Brazil’s largest criminal factions—Red Command (CV) and the First Capital Command (PCC)—as foreign terrorist organizations. Such designations would give the U.S. more power to “act as a political or economic actor in Brazil,” said Leonardo Paz Neves, an international relations professor at the Getulio Vargas Foundation. “It’s a defensive issue for Brazil that doesn’t serve Brazil’s interests at all.”
A Brazilian government official, speaking on condition of anonymity, said both sides appear committed to deepening cooperation on fighting organized crime rather than opting for unilateral actions.
Rare Earth Minerals on Agenda
Another key item likely on the agenda is access to Brazil’s rare earth deposits. Brazil has the world’s second-largest reserves of rare earth minerals, used in smartphones, electric vehicles, solar panels, and jet engines. Durigan reiterated Brazil’s stance that it does not want to be simply a raw material exporter. “Countries in the global north ... are thirsty for this raw material,” he said. “While foreign investment is welcome, we want industrial development within Brazil: creating jobs in partnership with our universities.”
Domestic Challenges for Lula
The trip takes place amid a difficult domestic scenario for Lula, who last week suffered two blows from Congress. The lower house overrode his veto on a law seeking to reduce Bolsonaro’s prison time, while the Senate rejected his Supreme Court nomination—a first in over 100 years. The 80-year-old leader will seek a fourth, nonconsecutive term in October elections, with polls showing him neck-and-neck with Bolsonaro’s son, Senator Flávio. Lula departed for Washington D.C. Wednesday afternoon and is expected to arrive in the evening.
