Lula and Trump agree to continue negotiations on tariffs against Brazil

Canada announced plans to impose retaliatory tariffs on U.S. imports on a "dollar-for-dollar" basis following the collapse of trade negotiations with the United States. The decision was made by Prime Minister Mark Carney after talks failed to reach an agreement, with the deadline for discussions approaching. The Canadian government has ordered its negotiators back to Ottawa, criticizing last-minute changes made by Washington during the final stages of the talks. Carney described these modifications as unfair, economically damaging, and undermining trust in any potential deal. The breakdown in negotiations coincided with the implementation this Saturday of new U.S. tariffs of up to 50 percent on certain Canadian products, affecting imports valued at nearly $20 billion. Carney stated that the economic relationship between Canada and the United States is undergoing fundamental change since Donald Trump returned to the White House. He emphasized that Canada recognizes the transformation in the U.S. approach to trade, noting that the country is altering all its commercial relationships, imposing tariffs on close allies, and charging for access to its large market. Ontario, one of the provinces most affected by the dispute due to its manufacturing and automotive industries, supported the move. Premier Doug Ford expressed full backing for a firm response, stating that Canada should retaliate "tariff for tariff, dollar for dollar." Meanwhile, the Trump administration blamed Ottawa for the failure of the negotiations. U.S. Trade Representative Jamieson Greer claimed that Canada refused to finalize an agreement under terms previously agreed upon. Greer added that new Canadian demands and alleged breaches of other commitments had disrupted the delicate balance reached in recent days. The negotiations aimed to reduce existing trade barriers. Among the proposals discussed were lowering U.S. steel and aluminum tariffs on Canadian goods from 50 percent to 25 percent and reducing automobile tariffs from 25 percent to 15 percent. The U.S. also sought concessions such as changes to Canadian dairy quotas and the removal of some retaliatory measures previously adopted by Ottawa and various provinces. No further meetings have been scheduled between the two delegations, according to available information. The Canadian government's stance reflects a broader strategy to protect its interests amid increasing tensions over trade policies. With approximately 70 percent of its exports going to the United States, prolonged disputes could significantly impact Canada’s economy. In a separate development, Brazilian President Luiz Inácio Lula da Silva and U.S. President Donald Trump agreed via telephone to continue negotiations regarding the 37.5 percent tariffs imposed by the U.S. on Brazilian imports. According to the Brazilian presidency, Lula argued that the reasons cited by the U.S. Office of the U.S. Trade Representative for imposing the tariffs are unfounded. He proposed continuing negotiations as the best option to maintain strong trade ties between the two countries. Trump reportedly agreed with the need to preserve robust commercial relations and suggested that teams from both nations meet as soon as possible. The tariffs announced in July stemmed from investigations into practices deemed anti-competitive and the importation by Brazil of products made using forced labor, claims rejected by the Lula administration. During their hour-and-20-minute call, the leaders also addressed combating organized crime. Lula reaffirmed his government's interest in cooperating with Washington, stating that Brazil has instruments to tackle criminal factions without classifying them as terrorist groups, a designation recently given by the Trump administration to the Comando Vermelho (CV) and Primeiro Comando da Capital (PCC), Brazil's two main gangs. Lula mentioned financial suffocation strategies and plans for new maximum-security prisons as part of Brazil's efforts against organized crime. Trump indicated willingness to strengthen bilateral cooperation in this area and pledged to appoint high-level officials to oversee progress. On the international stage, both leaders stressed the urgency of a negotiated solution to the Russia-Ukraine conflict after nearly five years of hostilities. Additionally, Lula criticized the inefficiency of the UN Security Council, of which the U.S. is a permanent member, and proposed holding an extraordinary meeting to find diplomatic solutions to conflicts, adding that true leadership involves ending wars rather than starting them.