China and Brazil Deepen Strategic Coordination Amid U.S. Tariff Pressure

On July 27 2026, Chinese President Xi Jinping and Brazilian President Luiz Inácio Lula da Silva held a telephone conversation lasting more than an hour. Both leaders said they would speed up negotiations for a Mercosur-China trade agreement that would incorporate “necessary flexibilities.” The discussion also covered a short-stay visa-waiver programme and expanded cooperation in artificial intelligence, satellite technology, critical-minerals processing and fertilizer trade.

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Brazil had long resisted a Mercosur-China deal, but the stance shifted after Washington imposed a 12.5 percent levy on 60 trading partners—including Brazil—and later added a 25 percent tariff on several Brazilian products. Reuters reported that the new U.S. duties, together with combined tariffs reaching 37.5 percent on 16.5 percent of Brazil’s exports, heightened Brazil’s interest in diversifying markets. The call occurred as Brazil approaches a presidential election, with the first round scheduled for October 4 2026 and a possible runoff on October 25 2026.

Global Times

• July 22 2026 – Chinese Foreign Minister Wang Yi and Brazilian Foreign Minister Mauro Vieira met in Manila during ASEAN meetings.

China and Brazil pledge mutual support

• July 27 2026 – President Xi and President Lula held the phone conversation described above.

Reuters

• July 25 2026 – Brazil denied visa applications from two U.S. State Department officials, citing concerns over interference in its electoral process.

China and Brazil pledge mutual support

• Bilateral trade reached $187.987 billion in 2025, according to the Chinese Foreign Ministry.

Global Times

• In the first half of 2026, trade surged nearly 30 percent year-on-year, with over 30 percent of Brazil’s exports destined for China.

Global Times

• The United States imposed a 25 percent tariff on several Brazilian products and, combined with other duties, applied 37.5 percent tariffs to 16.5 percent of Brazil’s export basket.

China and Brazil pledge mutual support

He called for stronger bilateral and multilateral strategic coordination, greater BRICS cooperation and a joint role in reforming global governance.

Global Times

He highlighted record-high bilateral trade, the Brazil-China Cultural Year, and a desire to expand cooperation in artificial intelligence, energy and mineral resources.

Global Times

U.S. officials’ push to restrict Brazil’s critical-minerals sector represents direct opposition to Brazil’s trade diversification strategy. The stance was articulated by U.S. officials during talks preceding the tariff imposition, as reported by Socialist China.

China and Brazil pledge mutual support

• “Respecting all countries' sovereignty and opposing external meddling constitutes an enduring tenet of China's diplomacy,” — Jiang Zhou, Global Times

Global Times

Brazil will continue negotiations toward a Mercosur-China agreement, while also seeking to diversify exports to the European Union and other markets, as suggested by Brazilian political scientist Leonardo Trevisan. The upcoming presidential election on October 4 2026 will shape Brazil’s future trade and diplomatic priorities.

Reuters