What Happened?

If you follow U.S.-Brazil trade or environmental policy, note that the Trump administration had not recognized Luiz Inácio Lula da Silva's reelection as president of Brazil as of Oct. 28, even though the Organization of American States (OAS) election observation mission, many foreign governments, and most of Brazil's political leadership had accepted the result. A Legis1 review of a Congressional Research Service (CRS) report on Brazil and U.S. relations laid out the state of the relationship. ​

Lula defeated Flávio Bolsonaro in the Oct. 25 runoff 51.8 percent to 48.2 percent, a margin of 3.6 points. An Organization of American States election observation mission, many foreign governments, and most of Brazil's political leadership recognized the result.

Why Does it Matter to Me?

Bilateral goods and services trade between the United States and Brazil stood at nearly $135 billion in 2025, according to the Congressional Research Service (CRS).

Emergency-authority tariffs were struck down in February 2026 after the Supreme Court ruled the administration lacked authority to impose them, but a 25 percent Brazil-specific tariff on covered goods remains in place under a separate trade law.

Congress set aside $38 million for environmental programs across the Amazon region in fiscal 2026, but the administration terminated nearly all environmental programs in Brazil run by the U.S. Agency for International Development (USAID) and the U.S. Forest Service.

Both Sides, Now

The Trump administration imposed tariffs and sanctions tied to Brazil's prosecution of former President Jair Bolsonaro and its courts' 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.

In June 2026, the administration designated two Brazilian criminal organizations as foreign terrorist organizations over the Lula administration's objections, according to the Federal Register. AP News reported that the termination of USAID and Forest Service programs raised concerns about lasting damage to U.S.-Brazil environmental cooperation.

What Happens Next?

Lula is scheduled to begin his fourth term on Jan. 5, 2027, and whether the Trump administration intends to make new conservation awards in Brazil remains unclear. Congress is set to take up fiscal 2027 appropriations and exercise oversight of U.S.-Brazil relations covering trade, security, and environmental policy.

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AllCiv makes it easy to stay politically informed and involved.

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