In a significant diplomatic encounter, President Donald Trump convened with Brazilian President Luiz Inácio Lula da Silva on Sunday in Malaysia. The meeting occurred against the backdrop of escalating trade tensions between the United States and Brazil, marking a pivotal moment in the bilateral relationship.

The White House shared the news of this high-profile meeting on the social media platform X, highlighting its significance at the Association of Southeast Asian Nations (ASEAN) summit. The post, which included a photograph of the two leaders, underscored the importance of the dialogue as both nations seek to navigate their complex economic ties.

Following the meeting, President Lula expressed optimism about the discussions, noting that teams from both countries are set to commence immediate work on addressing tariff issues and broader economic negotiations. This proactive approach aims to forge a path toward mutually beneficial agreements, as reported by Reuters.

President Trump echoed this sentiment in the White House’s post, describing the engagement with President Lula as a “great honor.” He conveyed confidence in the potential to craft favorable deals for both nations, signaling a robust commitment to enhancing trade relations.

This meeting builds on a previous conversation between Trump and Lula earlier in the month, during which they discussed tariffs. Both leaders characterized that dialogue as a positive step towards mending and strengthening the ties between their countries.

During the call, Lula asked Trump to get rid of the extra 40 percent tariff he imposed this summer over the prosecution of ex-Brazilian President Jair Bolsonaro on an alleged plan to hold onto power after losing an election. The new tariff raised the prior rate from 10 percent to 50 percent.

Tensions between Brazil and Trump had been high in part because of the prosecution of Bolsonaro, which Trump had criticized as a “witch hunt,” a phrase he has also used to describe cases brought against him.

In an opinion piece in The New York Times in September, Lula fired back at the remarks, while calling Trump’s tariffs illogical and misguided.

Trump’s tariff policy since returning to office in January has strained relationships with multiple countries, including allies like Canada and the European Union. It has also rattled markets and increased economic uncertainty. Trump has said the tariffs will save the country by helping domestic manufacturers and increasing national security.

On Saturday, Trump hit Canada with a 10 percent tariff on top of a prior rate in the wake of an advertisement pushing against tariffs airing amid the World Series, in which Canada’s own Toronto Blue Jays are playing.

The Canadian advertisement includes different parts of a 1987 speech from former President Reagan on “free and fair trade.”