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Trump Meets with Brazil's Lula to Talk Trade, Extends EU Tariff Deadline

President Donald Trump met Brazilian President Luiz Inácio Lula in Washington, scrapping a joint press conference but signaling a warming of diplomatic ties after months of tension over trade. The conversation focused on existing tariffs – the United States currently levies roughly 10% on Brazilian imports, a rate that could rise after a summer deadline when investigations conclude – and on broader trade issues such as rare‑earth minerals, which were acknowledged but deferred for future talks. Analysts noted that both leaders described the meeting as “dynamic” and “very happy,” yet offered no concrete policy breakthroughs. The looming deadline on Brazil’s tariff review and the postponed rare‑earth negotiations underscore a fragile truce that could quickly shift if the U.S. moves to increase duties. In parallel, the administration extended the European Union’s auto‑tariff deadline to July 4, a move that eases short‑term market anxiety while the so‑called Turnberry Accord remains under negotiation. The discussion also touched on Trump’s upcoming China trip, where CEOs from Nvidia, Boeing, Apple and other heavyweight firms are expected to accompany him, hinting at a continued focus on high‑technology and aerospace sectors despite broader trade standoffs. Lula’s public optimism and Trump’s vague commitment to “lower‑level” meetings suggest a strategic pivot toward dialogue rather than confrontation. If the tariff deadline passes without escalation, U.S.‑Brazil trade could stabilize, benefitting commodity exporters and manufacturers reliant on rare‑earth inputs. The extended EU auto‑tariff timeline further signals a cautious, incremental approach to tariff reductions, potentially smoothing supply‑chain disruptions and reinforcing the administration’s broader agenda of selective trade de‑escalation.