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Milei’s São Paulo insults
Argentina-Brazil trade faces uncertainty after diplomatic tensions between Argentine President Javier Milei and Brazilian President Luiz Inácio Lula da Silva, with the dispute escalating after Milei made critical remarks about Lula during a political event in São Paulo in support of Brazilian Senator Flávio Bolsonaro.
Brazil responded by recalling its ambassador to Argentina for consultations, and the DatamarNews report says there are “no official measures affecting bilateral trade,” with import and export operations continuing normally.
The trigger for the crisis was Milei’s participation in the launch of Flávio Bolsonaro’s presidential candidacy at the auditorium of the Pacaembu Stadium, where Milei delivered a speech of about 25 minutes calling Lula a thief, a prisoner, a totalitarian, and “that leftist piece of shit.”
In the same speech, Milei urged Brazilians to vote for Flávio Bolsonaro to prevent Brazil from following “the same path that would have led Argentina to poverty,” and he also attacked Supreme Federal Court judge Alexandre de Moraes as “bald trash.”
Brazil mocks, then summons
Lula responded to Milei’s continued insults with open mockery when asked about Javier Milei, saying “Who? Who is that guy?” as he crossed paths with the press in Brasilia.
Brazil’s Foreign Minister Mauro Vieira met at the Itamaraty Palace with the Argentine ambassador, Júlio Bitelli, to assess the state of relations, and the El Mundo report says the Brazilian foreign ministry described the episode as involving “203 years of friendship and cooperation” and “Brazil as its main trading partner.”
The Brazilian Foreign Ministry summoned the Argentine ambassador in Brazil, Daniel Raimondi, and called in consultations the Brazilian representative in Buenos Aires, while Itamaraty described what happened as an unprecedented provocation in more than two centuries of bilateral relations.
El Mundo also reports that Brasilia summoned the Argentine ambassador to Itamaraty, Daniel Raimondi, after Milei labeled Lula a “thief” and a “convict,” and it says the Argentine president referred to Alexandre de Moraes as “bald garbage.”
Trade stakes inside Mercosur
DatamarNews frames the stakes around the scale of Argentina-Brazil commerce, saying Argentina-Brazil trade topped US$31 billion in 2025 and that goods trade reached US$31.195 billion in 2025, with Argentina exporting US$12.771 billion to Brazil and importing US$18.424 billion from Brazil.
It also says containerized trade showed Argentina’s exports to Brazil rose 46.3% in the January-May period compared with the same period a year earlier, while imports from its Portuguese-speaking neighbor fell 17%.
Universidad de Chile warns that while tariff retaliation seems unlikely because both countries are part of Mercosur and maintain tightly connected production chains, the crisis can still have consequences through political contacts and administrative controls within the bloc.
El Nacional adds that Mercosur is trying to consolidate its international prominence through new trade agreements, but the confrontation threatens to weaken regional cohesion as the private sector watches whether tensions remain confined to politics or begin to affect business confidence, investment plans and the future of Argentina-Brazil trade.
