Xi Jinping and Lula Push Trade Deal Amid US Tariffs

Chinese President Xi Jinping and Brazilian President Luiz Inácio Lula da Silva held a phone call on July 27, 2026, to accelerate negotiations for a trade agreement between China and the Mercosur trade bloc. The diplomatic push follows the United States' confirmation of a 25% tariff on Brazilian exports, which Lula described as a "strategic mistake."

Xi expressed support for Brazil's sovereignty and independence, specifically opposing "external interference" in Brazil's electoral process. This support comes as Lula faces right-wing candidate Flavio Bolsonaro in the October election and as Brazil denies visas to two U.S. officials seeking meetings with election authorities in Brasilia. Lula characterized recent U.S. tariffs as attempts by Washington to exert political influence.

Beyond trade and politics, the leaders committed to expanding cooperation in high-technology sectors, including artificial intelligence, satellites, critical minerals, and energy. They discussed global food security and the negative impacts of navigation restrictions in the Strait of Hormuz and the Bab el-Mandeb Strait. Both leaders affirmed their commitment to multilateralism and the authority of the United Nations, while criticizing the United Nations Security Council's inability to effectively respond to current international crises.