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President Donald Trump and Brazilian President Luiz Inácio Lula da Silva held a phone call aimed at easing recent diplomatic tensions and possibly reducing US tariffs imposed on Brazilian products.

Some shit you should know before you dig in: If you’re unaware, relations between the United States and Brazil have been rocky since Trump’s return to office. Trump has had a bone to pick with Brazil over the criminal prosecution of former Brazilian President Jair Bolsonaro, a close friend of Trump, who was sentenced to 27 years in prison for attempting to overturn the 2022 election results. Viewing the trial as a politically motivated “witch hunt,” Trump responded by sharply escalating economic pressure. This included imposing an additional 40% tariff on Brazilian goods in July, raising the total rate to 50%. On top of that, the US Treasury Department sanctioned several top Brazilian officials, including judicial figures involved in Bolsonaro’s case, and revoked visas for others. Trump has also been openly critical of Brazil’s increasing alignment with BRICS, the economic bloc that includes China and Russia, portraying it as a threat to US interests and global influence.

What’s going on now: In a notable development, President Trump and President Lula held a 30-minute video call described by both governments as cordial and constructive, signaling a possible breakthrough in rocky relations. The conversation focused primarily on trade and economic cooperation, with Lula pushing for the removal of the steep US tariffs currently imposed on Brazilian goods. According to a readout from Lula’s office, the two leaders “spoke in a friendly tone,” reminisced about the “good chemistry” they shared during their brief meeting at the United Nations last month, and even exchanged phone numbers to maintain a direct line of communication.

Lula noted that Brazil had a trade surplus with the US and argued that the tariffs were unjustified, while offering to meet Trump either in Washington or at upcoming summits in Malaysia or Brazil.

Trump echoed the upbeat tone in a post on Truth Social, stating, “We discussed many things, but it was mostly focused on the Economy, and Trade, between our two Countries. We will be having further discussions, and will get together in the not too distant future, both in Brazil and the United States. I enjoyed the call — Our Countries will do very well together!”