U.S. President Donald Trump and Brazilian President Luiz Inácio Lula da Silva have agreed to hold an in-person meeting, following a friendly 30-minute video call that both sides described as constructive. According to a statement from Lula's office, the two leaders exchanged personal phone numbers to establish a direct line of communication and discussed improving bilateral ties after a brief interaction at the United Nations last month.

The meeting is expected to take place soon, with Lula proposing a face-to-face during the upcoming ASEAN summit in Malaysia. He also expressed his willingness to travel to the United States to continue the dialogue.

The diplomatic thaw comes as U.S.-Brazil relations are at their lowest point in decades, primarily due to Trump's decision to impose steep tariffs on Brazilian exports. The U.S. raised import duties on Brazilian coffee and beef from 10% to 50%, citing political concerns over the prosecution of former Brazilian President Jair Bolsonaro. Trump, who has criticized the case as a "witch hunt," also sanctioned Brazil's Supreme Court Justice Alexandre de Moraes under the Magnitsky Act and revoked the visas of six senior Brazilian officials, including Attorney General Jorge Messias.

While Lula's office did not reference Bolsonaro during the call summary, it did confirm that the Brazilian president urged Trump to lift the additional 40% tariff imposed on key Brazilian exports. The impact has been severe: Brazil's coffee exports to the U.S. have plummeted by as much as 70%, and beef shipments have also declined sharply. The tariff-induced shortage has pushed up U.S. coffee prices, with roasters turning to more expensive suppliers in other regions to meet demand.

The White House described the conversation as "very good," highlighting mutual interest in strengthening economic and trade relations. Trump noted that "we'll meet in the near future, both in Brazil and the United States," and appointed Secretary of State Marco Rubio to lead further negotiations. Rubio will work directly with Brazilian Vice President Geraldo Alckmin, Foreign Minister Mauro Vieira, and Finance Minister Fernando Haddad to address tariff-related disputes.

For Brazil, the stakes are high. With the U.S. being a top trade partner, the imposed duties have hit its agribusiness sector particularly hard. The markets in Brazil are closely watching developments, as the upcoming summit could mark a turning point in what has been one of the most tense trade periods between the two countries in recent memory.

This renewed diplomatic engagement coincides with growing pressure on the Trump administration to also bail out U.S. farmers hurt by international trade disputes and collapsing commodity prices. Against this backdrop, a deal with Brazil could ease domestic inflation, stabilize coffee supplies, and provide political wins on both sides.

At the UN General Assembly last month, Lula criticized the use of unilateral and arbitrary measures targeting Brazil's institutions and economy, a comment widely interpreted as aimed at Trump's policies. Now, with negotiations underway and a high-level meeting on the horizon, both leaders appear to be testing a new path forward-one that could reshape U.S.-Brazil trade relations amid a shifting global order.