Lula Negotiates with Trump on 50% Tariff; Rueda Criticizes Lula's Negotiation Approach
Key Takeaways
- Lula called Trump to negotiate 50% tariff on Brazilian exports effective August 1st.
- PT plans fewer gubernatorial candidates in 2026, prioritizing alliances for Lula's re-election.
- Lula invited João Paulo Cunha to run for Chamber of Deputies in 2026 elections.
- José Dirceu confirmed he will run for federal deputy in 2026.
- Congress to discuss increasing paternity leave after recess; STF gave 18 months for regulation.
Top Stories
Lula calls Trump to negotiate 50% tariff on Brazilian exports.
On July 25, 2025, Lula called Trump to negotiate a 50% tariff on Brazilian exports, emphasizing Brazil's willingness to talk. This move aims to address the 'Bolsonaro Tariff' and avoid retaliation.
Rueda criticizes Lula's handling of US tariff negotiations.
Antonio Rueda criticized President Lula's handling of negotiations with the United States regarding the 50% tariff on Brazilian exports, set to take effect on August 1. Rueda urged Lula to call Trump to discuss the matter.
São Paulo Governor warns of economic impact of US tariffs.
São Paulo Governor Tarcísio de Freitas warned that U.S. tariffs could reduce the state's GDP and risk job losses. Gleisi Hoffmann attributed the issue to former President Bolsonaro.
Brazil responds to US 50% tariffs.
Brazil is responding to the U.S.'s 50% tariffs, effective August 1st, by planning emergency actions and seeking to increase trade with Mexico and Canada. The tariffs are also causing Latin American coffee-producing countries to redirect their exports.
Goiás Governor criticizes Lula's handling of US tariffs.
Goiás Governor Ronaldo Caiado criticized President Lula's government for its handling of U.S. tariffs, echoing concerns raised by other governors. Caiado accused Lula of prioritizing political gains over addressing the economic impact on Goiás.
Transport Minister criticizes Bolsonaro family.
Transport Minister Renan Filho stated that the Bolsonaro family is moving further to the extreme right and criticized Eduardo Bolsonaro's actions in the U.S. that led to the imposition of 50% tariffs on Brazilian products.
PT plans fewer gubernatorial candidates in 2026.
The PT plans for 2026 the smallest number of gubernatorial candidates in its history, prioritizing alliances to strengthen Lula's re-election and competitive names for the Senate. The strategy aims to contain the advance of bolsonarismo.
Lula asks João Paulo Cunha to run for Chamber of Deputies in 2026.
President Lula invited former deputy João Paulo Cunha to run for the Chamber of Deputies in the 2026 elections during an event in Osasco, São Paulo. This move is part of a strategy to strengthen the PT and its allies in Congress for a potential second term.
José Dirceu to run for federal deputy in 2026.
Former Minister José Dirceu confirmed he will run for federal deputy in 2026, citing 'historical repair' for his 2005 removal.
Congress to discuss increasing paternity leave.
The Brazilian Congress is set to discuss increasing paternity leave after the parliamentary recess, with proposals suggesting 15, 20, or 60 days. The STF gave 18 months for regulation, which expired in July 2025.
Economic Watch
Aneel: Red level 2 tariff flag for August.
On July 25, 2025, Aneel announced that the tariff flag for August will be red level 2, adding R$ 7.87 for every 100 kWh consumed. This increase is due to low rainfall, reducing hydroelectric generation and increasing production costs.
Brazilian cities explore solutions for urban mobility.
Brazilian cities are exploring solutions like AI, robotaxis, electric vehicles, and Mobility as a Service (MaaS) to reinvent urban mobility. Brazil needs R$ 670 billion in transport investments to increase the network by 122%.
Governors discuss economic strategies at Expert XP.
At Expert XP on July 26, 2025, São Paulo Governor Tarcísio de Freitas, Goiás Governor Ronaldo Caiado, and Paraná Governor Ratinho Jr. discussed economic strategies. Freitas advocated for administrative reform and revenue detachment to strengthen Brazil's economy from 2026.
Political Pulse
Moraes bans encampments in Praça dos Três Poderes, citing security and protests.
Minister Alexandre de Moraes banned encampments and mobilizations in Praça dos Três Poderes in Brasília, citing security concerns and the risk of new attacks, following protests against restrictions on former President Jair Bolsonaro. Jurists and deputies criticized the decision, questioning its legality and potential for institutional rupture.
Reuters debunks claims about Lula's stance on elections.
Reuters Fact Check debunked claims that President Lula defended ending elections in Brazil to remain in power. Lula discussed strengthening democracy and addressing the crisis in the political system, not ending elections.
Senator Marcos do Val travels to the US despite denied travel request.
Senator Marcos do Val traveled to the United States despite a denied travel request, using a diplomatic passport. He is under investigation and claims he is not fleeing, while his bank accounts are blocked by the STF.
Bolsonaro family's shift in stance towards STF.
Flávio and Eduardo Bolsonaro have changed their stance towards the STF, with Flávio seeking alliances and Eduardo adopting a more combative approach.
Governors discuss 2026 elections at Expert XP.
At the Expert XP event on July 26, 2025, São Paulo Governor Tarcísio de Freitas, along with Ronaldo Caiado and Ratinho Junior, discussed the 2026 elections. Freitas asserted the right-wing would remain united, with Jair Bolsonaro's involvement.
Rio's Mayor praises Ratinho Jr. for potential 2026 candidacy.
Rio's Mayor Eduardo Paes praised Paraná's Governor Ratinho Jr., encouraging his potential 2026 presidential candidacy. Ratinho is seen as a 2026 presidential candidate, preparing a run within the PSD.
Praça dos Três Poderes access restricted.
On July 26, 2025, the Military Police of the Federal District restricted access to Praça dos Três Poderes in Brasília, closing the area due to security measures. The closure prevents access to attractions.
Editorial criticizes Hugo Motta's fiscal practices.
Folha de S.Paulo published an editorial criticizing Hugo Motta, President of the Chamber of Deputies, for inconsistent fiscal practices, including misusing public funds. The editorial references a Datafolha survey indicating that nearly 60% of Brazilians are ashamed of current congressmen.
Michelle Bolsonaro's role in politics.
Michelle Bolsonaro is assuming a prominent role in the political scene due to judicial restrictions on ex-President Jair Bolsonaro. As president of PL Mulher, she has intensified articulations and trips on behalf of her husband, gaining prominence in political and religious meetings.
Centrão assesses position for 2026 presidential race.
The Centrão is assessing the political landscape and its position for the 2026 presidential race, distancing itself from Bolsonaro and cautiously assessing Lula's recovery. The parties are preparing for the election year.
Gleisi Hoffmann accuses Eduardo Bolsonaro of threats.
Gleisi Hoffmann accused Eduardo Bolsonaro of threatening Davi Alcolumbre and Hugo Motta with sanctions if they do not collaborate with the amnesty of Jair Bolsonaro. Eduardo Bolsonaro denied the accusations, stating he made no direct threats.
Gilmar Mendes supports Alexandre de Moraes.
Gilmar Mendes of the STF voiced support for Alexandre de Moraes amid criticism from the U.S. Embassy in Brasília, emphasizing Moraes' crucial role in protecting Brazilian democracy.