Recently, Trump warned of imposing severe tariffs, reaching 50 percent, on Brazil starting August 1. This announcement was made through a letter shared on his platform, Truth Social.

Trump attributed this drastic tariff measure to what he perceives as an unjust trial against Jair Bolsonaro, Brazil’s former right-wing president. In 2024, major US exports to Brazil encompassed items like aircraft, fuels, industrial machinery including nuclear reactors, and electrical equipment, as reported by the US Census Bureau.

A retaliatory 50 per cent Brazilian tariff on American goods could severely harm these industries.

Still open to negotiation

Still, Lula underscored his willingness to come to an agreement with Washington, saying that it is up to Trump to “seriously” consider negotiation and that he hopes the US president will change his mind.

“I’m not a progressive president. I am the president of Brazil. I don’t see President Trump as a far-right president. I see him as the president of the of the US – he was elected by the American people,” the former labour organiser told Amanpour, dismissing the possibility that their ideological backgrounds could embitter negotiations.

“The best thing in the world is for us to sit around a table and talk.

“If President Trump is willing to take seriously the negotiations underway between Brazil and the US, then I’ll be open minded to negotiate whatever may be necessary.

“But what is important is that the relationship between the two countries cannot go on like this.”

The investigation will focus on digital trade and electronic payment services, preferential tariffs, and anti-corruption interference, as well as intellectual property protection, to determine whether there are “unreasonable or discriminatory and burden or restrict” American commerce, according to a statement by the United States Trade Representative (USTR).

It will also look into ethanol market access and illegal deforestation.