MILWAUKEE, Sept. 30, 2026 — Brazil and the United States agreed Wednesday to establish a working group that will explore the scope of a possible bilateral trade agreement, a procedural step that keeps negotiations moving but does not itself change tariffs or create a trade deal.
The decision followed a meeting in Milwaukee, Wisconsin, held alongside a gathering of Group of 20 trade ministers. Brazil was represented by Foreign Minister Mauro Vieira and Development, Industry, Trade and Services Minister Márcio Elias Rosa, while U.S. Trade Representative Jamieson Greer represented Washington, according to reporting by Reuters and Brazil’s Folha de S.Paulo.
The United States is expected to submit a proposal in the coming weeks describing the scope of the group’s work. Brazil’s government said the proposal should cover tariff and non-tariff issues.
What was agreed
The two governments agreed to create a forum for discussing whether a broader commercial agreement is possible. They did not announce negotiated tariff schedules, market-access commitments, a timetable for completing an accord, or a signed legal text.
That distinction is important. A working group can identify areas for negotiation, compare each government’s priorities and decide which issues are mature enough for formal talks. It does not guarantee that the countries will ultimately reach an agreement.
Reuters reported the announcement at 2:18 p.m. EDT on September 30, citing a Brazilian government statement. Folha reported that the meeting lasted roughly 40 minutes and that both sides expressed interest in moving quickly to the next phase of discussions.
Tariff and non-tariff issues are both on the table
The proposed scope is expected to include tariffs as well as non-tariff barriers. Tariffs are taxes applied to imported goods. Non-tariff issues can include technical rules, digital-trade requirements, intellectual-property protections, payment systems, customs procedures and standards governing access to particular markets.
The U.S. Trade Representative concluded a Section 301 investigation into several Brazilian policies in June 2026. The USTR said the investigation covered digital trade and electronic payments, preferential tariffs, anti-corruption enforcement, intellectual-property protection, ethanol access and illegal deforestation.
Brazil rejected the U.S. findings and challenged related tariff measures through the World Trade Organization. Brazil’s Foreign Ministry said in July that the measures included an additional 25% tariff tied to the Brazil-specific Section 301 investigation and a separate 12.5% tariff connected to forced-labor enforcement concerns affecting multiple economies.
The new working group therefore begins against a backdrop of active disputes rather than a clean slate. The agreement to continue talks indicates that both governments see value in a negotiated path, but it does not suspend the existing measures unless either government separately announces a change.
How this differs from earlier talks
Brazilian and U.S. officials resumed high-level commercial dialogue in August after discussions between Presidents Luiz Inácio Lula da Silva and Donald Trump. On August 31, Vieira and Elias Rosa met virtually with Greer and agreed to continue ministerial and technical discussions.
The September 30 announcement goes one step further by creating a new group specifically focused on the possibility of an agreement. Folha reported that Brazilian officials view it as distinct from an earlier group connected to the USTR investigation.
Even so, the immediate result remains organizational. The next concrete milestone will be the U.S. proposal defining what the two sides would negotiate. Until that document is presented and accepted, it is too early to know which products, services or regulations might be included.
Why the talks matter
Brazil and the United States are the two largest economies in the Americas, and changes to their trading relationship could affect manufacturers, agricultural exporters, energy companies, technology businesses and consumers in both countries.
For Brazil, negotiations could offer a route to address the recent U.S. tariff actions and improve access for Brazilian goods. For the United States, the talks provide a way to pursue concerns raised through the Section 301 process and seek wider access in sectors where U.S. officials argue Brazilian policies disadvantage American companies.
A broader agreement could eventually reduce some trade costs or set clearer rules, but any economic effect will depend on the terms. Sensitive sectors, domestic politics, WTO obligations and possible approval procedures could all shape the process.
What happens next
The U.S. government is expected to send Brazil a written proposal in the coming weeks. The document should clarify the issues Washington wants included, after which the two governments can decide whether to begin more formal negotiations.
Important questions remain unanswered:
- Whether the current U.S. tariffs will be addressed at the start of the process;
- Which goods, services and digital-trade rules will be included;
- Whether the talks will involve Brazil alone or require coordination with Mercosur partners;
- What timetable the two governments will set; and
- Whether any resulting agreement would require legislative approval.
Those uncertainties mean businesses should not treat Wednesday’s announcement as an immediate change in import costs or customs rules.
Trade data will provide context
The negotiations come as the United States is closely watching the effect of trade flows on economic growth. The Census Bureau’s latest advance report showed the U.S. goods trade deficit widening to $132.6 billion in August, though that nationwide figure is not a measure of the bilateral balance with Brazil.
AskNovus also reported that U.S. gross domestic product grew at a revised 2.2% annual rate in the second quarter. Future tariff changes could influence trade and investment, but the working group is too preliminary to support a reliable forecast.
Bottom line
Brazil and the United States have opened a new channel for discussing a possible trade agreement. The development is meaningful because it creates a defined negotiating mechanism after months of tariff friction. It is not yet a trade deal, and it does not by itself remove or reduce any tariff.
Sources
- Reuters, “Brazil, US set up working group to discuss potential trade agreement,” Sept. 30, 2026.
- Folha de S.Paulo, report on the Milwaukee meeting, Sept. 30, 2026.
- Brazil’s Ministry of Development, Industry, Trade and Services, joint note on resumed dialogue, Aug. 31, 2026.
- Office of the U.S. Trade Representative, Section 301 determination, June 1, 2026.
Featured image: Samuel Costa Melo via Unsplash.