Milei Insults Lula in Brazil, Sparking Diplomatic Crisis with Top Trade Partner

Argentine President Javier Milei traveled to São Paulo on July 26, 2026, to endorse Flávio Bolsonaro's presidential campaign, where he called Brazilian President Luiz Inácio Lula da Silva a “thief”, “socialist trash” and a “prisoner”, and insulted Supreme Federal Court Vice-President Alexandre De Moraes. Brazil immediately recalled its ambassador for consultation and summoned Argentina’s ambassador. Brazil’s Ministry of Foreign Affairs called the episode unprecedented in 203 years of friendship. Milei later accused the Brazilian government of funding an anti-Argentina campaign during the World Cup, without evidence. The incident threatens $26.8 billion in annual bilateral trade, which accounts for 17% of Argentina’s exports and 18% of imports. Milei’s actions are seen as aligning with US interests to reduce Chinese influence in Latin America, as Lula and Xi Jinping discussed accelerating Mercosur-China trade talks. Argentina’s economy is fragile, with seven months of falling consumer demand and non-performing loans rising from 2% to 9.7% in 18 months. Former President Alberto Fernández called the insults “unforgivable”, and an unnamed diplomat described it as a “terrible day for Argentina’s foreign policy.”