Just as he was departing for the NATO conference in Europe, US President Donald Trump reaffirmed his intention to levy penalty tariffs on steel and aluminum from Brazil and Argentina.
Brazilian authorities accuse Horacio Cartes of mass money laundering and want him extradited. The move makes Paraguay the latest nation hit by Brazil's Operation Car Wash, dubbed the world's biggest anti-graft probe.
Their telephone call followed strained relations in recent weeks between Bolsonaro and Europe over combating wildfires in Brazil. Bolsonaro said Europe has "nothing to teach" Brazil about preserving the environment.
Brazil's economy minister has said the country could leave the trade bloc if Argentina's opposition wins presidential elections later this year. He also questioned how dependent Brazil's economy was on Argentina.
The Brazilian president has been coming under increasing pressure as European leaders criticize his environmental policies. Wildfires continue to rage in the Amazon rainforest.
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