Why It Matters
Differing policies and national interests have limited closer U.S.-Brazil cooperation despite substantial ties. A new Congressional Research Service (CRS) report says the Trump administration had not recognized President Luiz Inácio Lula da Silva’s reelection as of Oct. 28.
The relationship puts trade, security and environmental policy before Congress as it considers fiscal 2027 appropriations and exercises oversight. Congress may assess whether and how to continue shaping U.S.-Brazil relations as it considers fiscal year 2027 appropriations and exercises its legislative and oversight prerogatives.
The Big Picture
Lula defeated Flávio Bolsonaro in the Oct. 25 runoff, winning 51.8% to 48.2%. An Organization of American States election observation mission, many foreign governments and most of Brazil’s political leadership recognized the result.
The Trump administration imposed tariffs and sanctions in response to Brazil’s prosecution of former President Jair Bolsonaro and its judiciary’s regulation of social media, which the administration characterized as political persecution and censorship. Lula’s administration condemned those actions as politically motivated attacks on Brazilian sovereignty.
Emergency-authority tariffs were lifted in February after the Supreme Court ruled that the International Emergency Economic Powers Act did not authorize their use. Other duties remain on covered goods, including a 25% Brazil-specific tariff under Section 301 of the Trade Act of 1974. CRS puts bilateral goods and services trade at nearly $135 billion in 2025.
The Trump administration also terminated nearly all environmental programs in Brazil managed by the U.S. Agency for International Development and the U.S. Forest Service. Congress designated $38 million for environmental programs across the Amazon region in fiscal 2026 appropriations. The designation covered programs across the Amazon region, while nearly all environmental programs managed by USAID and U.S. Forest Service in Brazil were terminated.
In June, the administration designated the First Capital Command and Red Command as foreign terrorist organizations over the Lula administration’s objections. The countries continue to cooperate in some security areas despite disputes and interruptions in others.
The Bottom Line
Lula is scheduled to begin his fourth term on Jan. 5, 2027. Whether the Trump administration intends to make new conservation awards remains unclear.
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