Brazilian President Luiz Inacio Lula da Silva urged US counterpart Donald Trump in a phone call Friday to resolve their countries' trade dispute, saying US tariffs were imposed on "baseless" grounds. Washington imposed two new sets of tariffs on the Latin American giant in July, a move that has become a key campaign issue ahead of Brazil's presidential election in October. Lula -- seeking a fourth and final term -- told Trump that the tariffs "negatively affect both Brazil and the United States," according to a statement from his office. "To remain at the negotiating table is the best option for both countries," he said. Relations between Trump and the leftist Lula have blown hot and cold in recent months, but diplomatic tensions have flared as the election approaches. Trump has backed several victorious right-wing candidates in recent Latin American elections. He is an ally of Brazil's jailed far-right former president Jair Bolsonaro, whose son Flavio is Lula's main election rival. The Brazilian presidency statement said the conversation between Trump and Lula lasted an hour and 20 minutes and "took place in a friendly and cordial tone." During a campaign event in the southeastern state of Minas Gerais, Lula said Trump asked Commerce Secretary Howard Lutnick to contact his Brazilian counterpart Marcio Elias Rosa "and they already scheduled a meeting." He added that Trump acknowledged during their call that the tariffs on Brazil are "based on a lie." Lula, who like Trump is 80, has made national sovereignty a key theme of his campaign. In an interview last week, he warned Trump: "Don't meddle in Brazil's affairs, especially regarding the election. If you do meddle, you'll lose." "I said, 'Hey Trump, if you want to fight organized crime, let's fight organized crime,'" Lula told the crowd in Minas Gerais. "We want to work together. What we don't want is interference in Brazil." - 'Daily terror'- The two leaders have often appeared to get on well one-on-one, with Trump last year hailing an "excellent chemistry" with Lula. The US last year dropped punitive tariffs it imposed over the trial against Jair Bolsonaro, which Trump labelled a "witch hunt," after diplomatic efforts by Lula's government. However, Lula then suffered a blow after a May visit to the White House by Flavio Bolsonaro. Two days later, the US designated Brazil's two largest drug cartels as terrorist organizations, which Flavio has said was a personal request. "These criminal groups inflict daily terror on the most vulnerable populations, but they are not the same as terrorist organizations," Lula told Trump. Security is the main concern of Brazilians heading into this year's elections, polls have shown. Flavio Bolsonaro is pushing for a tough-on-crime model like that of El Salvador's President Nayib Bukele, whose sweeping crackdown on gangs and mass detentions have drawn controversy. - Deforestation and PIX - The United States imposed a 25-percent tariff on a range of Brazilian goods over policies it argued harm US commerce, such as deforestation and a free electronic payments system known as PIX. Brazilian data shows deforestation in the Amazon fell last year to its lowest point since 2016. Brazil was also impacted under a separate global tariff regime against US trading partners accused of using forced labor. Lula has repeatedly said he believes it was US Secretary of State Marco Rubio and not Trump who was behind the tariffs against Brazil. "Trump is the best of the lot, and the one who talks most seriously with me," he said last week.
