Brazil, U.S. set up trade talks working group after tariff tensions

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Parshwa Turakhiya

30.09.2026

Brazil, U.S. set up trade talks working group after tariff tensions — Brazil, U.S. start trade talks

Brazil and the U.S. are moving to formalize trade discussions after months of friction over tariffs and market access. The two countries will create a working group to examine a potential trade agreement, with Washington expected to present the scope of negotiations in the coming weeks.

Highlights

Brazil and the U.S. establish a working group to address tariff and non-tariff issues ahead of potential trade negotiations, with a U.S. proposal expected in weeks.
Tariff tensions intensified after the U.S. imposed 25% duties on some Brazilian goods in July over alleged unfair trade practices, plus 12.5% tariffs citing forced labor concerns.
Brazil signals it will not invoke the reciprocity law against U.S. tariffs during ongoing talks, emphasizing a focus on negotiation over immediate retaliation.

Framework for trade negotiations

As reported by Reuters, citing the Brazilian government, the working group is being established after a meeting between officials from both countries and is intended to address issues tied to a possible trade agreement. The statement says the U.S. will submit a proposal in the coming weeks outlining the scope of negotiations, including tariff and non-tariff matters.

Both sides aim to move quickly toward a mutually acceptable understanding, according to the statement. Brazil's Foreign Minister Mauro Vieira and Trade Minister Marcio Elias Rosa meet U.S. Trade Representative Jamieson Greer on the sidelines of the G20 Trade Ministers' Meeting.

Tariff backdrop and bilateral impact

The latest step builds on bilateral contacts after an August phone call between U.S. President Donald Trump and Brazilian President Luiz Inacio Lula da Silva. Trade talks are taking place against the backdrop of tariffs announced by Washington in July, including duties of 25% on some Brazilian goods over alleged unfair trade practices and 12.5% tariffs linked to allegations of weak enforcement of forced labor bans.

Brazil is not intending to use its so-called reciprocity law over tariffs against the U.S. while the discussions continue, Lula tells CNN International earlier this month. The decision signals that Brasilia is prioritizing negotiations over retaliation as both sides test whether a broader trade understanding can reduce tensions.

Our earlier coverage of the Milwaukee Framework explained how the U.S. planned to present a coordinated approach at the G20 to counter global steel overcapacity and encourage tougher trade defenses. We noted that the initiative could lead countries to tighten import barriers and align tariff or restriction policies, keeping industrial-capacity concerns and trade frictions high on the agenda.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.

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