Brazil turns to China trade deal after Trump’s tariffs, as years of resistance end

Xi and Lula agree to fast track Mercosur trade talks, endorsing a deal Brasilia fought to bury when Uruguay first proposed it

The two leaders spoke by telephone for more than an hour, according to a statement from the Brazilian presidency, and “coincided on the importance of speeding up the talks for a Mercosur-China agreement that contemplates the necessary flexibilities”.

The readout said the presidents discussed aligning the two countries’ national development projects and reaffirmed plans to expand cooperation in strategic and high-technology sectors, including artificial intelligence, satellites, critical-minerals processing, and fertiliser trade.