US President Donald Trump and Brazilian President Luiz Inacio Lula da Silva held a “very good” phone conversation on Monday, signaling potential thaw in relations strained by recent trade disputes.

Trump announced on Truth Social that the two leaders discussed economic and trade cooperation and agreed to meet soon in both countries. “We will be having further discussions, and will get together in the not too distant future,” Trump said, adding that the US and Brazil “will do very well together.”

This marks the first major dialogue since Washington imposed a 50% tariff on Brazilian goods in response to Brazil’s legal action against Trump ally and former president Jair Bolsonaro.

Lula confirmed the conversation on X, calling it an opportunity to restore “201 years of friendly relations between the two largest democracies in the West.” He emphasized that Brazil maintains a trade surplus with the US and pressed for the removal of tariffs on Brazilian exports.

The two leaders are expected to meet during the ASEAN Summit in Malaysia later this month.

Brazil, a BRICS member, has been critical of Trump’s tariff policies, with Lula warning against “tariff blackmail” at a recent BRICS meeting.

India and Brazil both face similar 50% tariffs under the Trump administration’s trade measures. Talks between Indian Commerce Minister Piyush Goyal and US Trade Representative Jamieson Greer in New York on September 22 have renewed hopes for resolution.

The Trump-Lula exchange could mark a tentative reopening of dialogue between the US and Latin America’s largest economy amid escalating global trade tensions.