Core Points - The U.S. has lifted sanctions on Brazilian Supreme Court Justice Alexandre de Moraes, indicating a diplomatic reset with Brazil as relations improve under President Luiz Inacio Lula da Silva [1][2] - The sanctions were initially imposed under the Global Magnitsky Act and were also lifted for Moraes' wife and a financial entity linked to his family [3] - The lifting of sanctions follows a phone call between Trump and Lula, which was described as "productive," and comes alongside the rollback of U.S. tariffs on Brazilian goods [5][6] Sanctions Context - The sanctions were imposed by the Trump administration, which accused Moraes of abusing judicial power during the prosecution of former President Jair Bolsonaro [3][4] - Moraes oversaw the case that led to Bolsonaro's conviction for attempting to overturn the 2022 election results [2] Market Reaction - Brazilian markets showed a modest positive reaction, with the iShares MSCI Brazil ETF gaining 0.48% during regular trading and 0.18% in after-hours trading [7]