Lula, Sheinbaum discuss closer trade ties ahead of US tariffs
BRASÍLIA: The presidents of Brazil and Mexico spoke yesterday to seek closer trade ties during what he called a 'moment of uncertainty,' just days before US tariffs are set to take effect, officials in Brasilia said.
US President Donald Trump has threatened to hit Brazil with 50% levies and Mexico 30% tolls if they are unable to reach agreements before his Aug 1 deadline.
During the conversation, Brazil's Luiz Inacio Lula da Silva stressed the 'importance of deepening economic and trade relations between the two countries, especially given the current time of uncertainty,' his office said in a statement.
Both countries – Latin America's biggest economies – are trying to negotiate with Washington to reduce the tolls but have yet to reach any agreement.
Lula proposed to Mexican counterpart Claudia Sheinbaum starting talks to 'expand the Brazil-Mexico trade agreement' and to seek ways to increase the 'flow of trade between the two countries', according to the statement.
Brazilian vice-president Geraldo Alckmin will travel to Mexico on Aug 27-28 with a delegation of business leaders to explore potential opportunities in sectors such as pharmaceuticals, agriculture and aerospace, among others, the presidency added.
Trump's tariffs on Brazil are partly motivated by the coup-plotting trial of far-right former president Jair Bolsonaro, whom Trump has described as the victim of a 'witch hunt' by the supreme court.
The threat has been condemned by Lula as 'unacceptable blackmail' and sparked an unresolved diplomatic crisis between Brasilia and Washington.
For Mexico, the tariffs stem from what Trump considers insufficient government efforts to combat drug trafficking.
The Mexican government says it is in negotiations in Washington to reduce the tariffs, while Brazil says it has yet to receive a response to a letter sent to the US government requesting talks.
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