(MENAFN- Live Mint) US President Donald Trump and Brazilian President Luiz Inacio Lula da Silva met on Sunday (October 26) in Kuala Lumpur on the sidelines of the ASEAN Summit, signaling a potential thaw in relations after months of trade tensions. Lula described the meeting as“great” and said both countries' negotiating teams would work“immediately” to address tariffs and other issues.

Following the meeting, Lula emphasized that officials from both sides would begin talks immediately.“We agreed that our teams will meet immediately to advance the search for solutions to the tariffs and sanctions against Brazilian authorities,” he said in a post on X.

Brazil's Foreign Affairs Minister Mauro Vieira called the meeting“very positive” and described the results as“highly satisfactory.” He indicated that the negotiations could conclude“within a few weeks.”

Trump earlier expressed optimism about resolving the trade conflict.“We should be able to do some pretty good deals for both countries,” he said, adding that he believed the leaders“get along very well.”

Background of tensions

The meeting follows a period of strained relations after Trump imposed tariffs in July, raising duties on most Brazilian exports to 50 percent from 10 percent. The tariffs were linked to the prosecution of former Brazilian President Jair Bolsonaro, a political ally of Trump. Additional sanctions and visa restrictions were later applied to Brazilian officials and judges.

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Key discussion points include resolving trade disputes investigated by the Office of the US Trade Representative, such as regulations affecting US social media companies in Brazil and ethanol industry policies.

Brazil holds the world's second-largest reserve of rare earth minerals, after China. Lula indicated a willingness to discuss opportunities to expand development of minerals used in electric vehicles, advanced weapons systems, and medical devices.

High-level dialogue to continue

The Sunday meeting was the first official sit-down between the two leaders and the first extended interaction since relations sharply deteriorated over tariffs. It follows a brief encounter at the UN General Assembly in New York last month, which helped pave the way for renewed high-level talks.

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