Diplomatic Breakthrough: Lula and Trump Hold Constructive Phone Talks

Brazilian President Luiz Inácio Lula da Silva engaged in a pivotal 50-minute phone conversation with U.S. President Donald Trump on January 26, 2026, marking a significant moment in bilateral relations. The discussion spanned critical regional issues, including the ongoing crisis in Venezuela, Trump’s newly launched “Board of Peace” initiative primarily aimed at Gaza’s postwar administration, and opportunities for enhanced cooperation against organized crime. This call, coming amid heightened tensions in Latin America, underscores a thawing of relations between Brasilia and Washington following earlier frictions over trade tariffs and foreign policy divergences.

The leaders agreed that Lula would make an official visit to Washington in the near future, specifically after his scheduled trips to India and South Korea in February 2026. This commitment signals a willingness to deepen dialogue at the highest levels, potentially paving the way for concrete agreements on economic, security, and diplomatic fronts.

Background on Evolving Brazil-U.S. Relations

Brazil and the United States share a long history of cooperation, with bilateral trade reaching approximately $23.9 billion in the first half of 2025 alone for Brazilian exports to the U.S. However, relations hit rough patches in 2025 when the Trump administration imposed 40% tariffs on Brazilian goods, leading to a 6.6% drop in exports—the steepest decline since the pandemic. Key exemptions were later granted for agricultural products like soy and beef, reflecting negotiation progress.

Their first in-person meeting on the sidelines of the ASEAN Summit in Kuala Lumpur on October 26, 2025, set a positive tone, with Trump exempting major Brazilian exports from tariffs and lifting sanctions on a prominent Brazilian judge. This foundation has now extended to phone diplomacy, highlighting pragmatic engagement despite ideological differences—Lula’s left-leaning multilateralism versus Trump’s unilateral approach.

Venezuela’s Turmoil and Brazil’s Strategic Stake

The Venezuela discussion dominated the call, reflecting Brazil’s proximity and humanitarian concerns. On January 3, 2026, U.S. forces executed a military operation that deposed President Nicolás Maduro, capturing him and his wife and transporting them to New York to face drug-trafficking charges. Trump announced the U.S. would oversee Venezuela until a “safe, proper, and judicious transition,” a move that divided Latin America.

Lula reiterated the need to “preserve peace and stability in the region” and prioritize Venezuelan welfare, criticizing the U.S. action as crossing “an unacceptable line.” Brazil, sharing a 2,200-km border with Venezuela, hosts around 261,000 to 330,000 Venezuelan migrants and refugees—18% of its total immigrant population—straining northern states like Roraima. In 2024, Brazil welcomed 194,331 migrants, mostly Venezuelans, under Lula’s humanitarian policies granting residence permits to 98% of applicants.

• Potential refugee surge post-intervention: Unlikely to accelerate significantly, per experts, but border closures temporarily heightened risks.
• Humanitarian aid: Brazil advocates multilateral solutions over unilateral interventions to avoid bloc confrontations.
• Energy security: Venezuela’s oil instability affects regional markets, with U.S. firms eyeing assets.

A Al Jazeera report details border tensions, while polls show pragmatic Latin American support for the raid despite ideological splits.

Unpacking Trump’s ‘Board of Peace’ Initiative

Launched on January 22, 2026, the Board of Peace forms part of a framework for Gaza’s postwar governance following the October 10, 2025, Israel-Palestine ceasefire. It includes an Executive Board and provides political backing/oversight for the National Committee for the Administration of Gaza (NCAG). Trump invited over 60 leaders; about 21-35 have joined, including UAE, Saudi Arabia, Egypt, Qatar, Pakistan, Turkey, Hungary, Argentina, Bahrain, Morocco, and others.

Trump insists it complements the UN, but critics fear it rivals the organization. Lula previously blasted it as Trump forging a “new UN where only he is the owner.”Reuters analysis highlights European reservations.

Photo by Sophie Keen on Unsplash

Lula’s Nuanced Stance on Global Peace Efforts

During the call, Lula urged limiting the Board to Gaza and reserving a seat for Palestine, tying it to a political horizon for Palestinian statehood. He advocated UN Security Council reform, expanding permanent members—a longstanding Brazilian position for equity in global governance. Brazil remains cautious, with no formal commitment to join, prioritizing multilateralism.

This reflects Lula’s diplomacy: balancing criticism with engagement, as seen in recent calls with Xi Jinping and Vladimir Putin emphasizing UN centrality.

Strengthening Ties Against Organized Crime

The leaders explored expanded cooperation on organized crime and money laundering. Brazil’s Primeiro Comando da Capital (PCC) has globalized, dominating fuel theft, finance, and even football-related crimes, posing threats beyond borders. U.S.-Brazil intelligence sharing could target cartels exploiting Venezuela’s chaos.

• PCC expansion: From São Paulo prisons to international operations.
• Recent raids: Brazil targeted fuel sector crime in 2025, aligning with U.S. priorities.
• Potential: Joint task forces on extraditions and asset seizures.

Economic Implications and Trade Opportunities

Trump praised bilateral growth prospects. With tariffs eased, Brazil eyes deeper market access. Key exports: aircraft, coffee, meat—vital for jobs.

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Stakeholder Perspectives and Domestic Reactions

Brazil’s government views the call positively for stability. Opposition may welcome U.S. alignment against Maduro. Experts note pragmatism trumping ideology, with polls showing Latin support for intervention.

Photo by Markus Winkler on Unsplash

Future Outlook: Lula’s Washington Visit and Beyond

The visit promises advancements in trade pacts, security, and regional peace. Brazil positions as a bridge-builder in multipolar world.

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