Brazilian President Luiz Inácio Lula da Silva secured another term after defeating Sen. Flávio Bolsonaro, extending the political divide between Latin America's largest economy and President Donald Trump.

Lula Wins Brazil Election, Defying Trump's Regional Influence

With all votes counted, Brazil's electoral authorities declared Lula the winner, the Associated Press said on Sunday. The result bucks a regional trend in which right-leaning candidates aligned with Trump have gained ground.

Lula's victory leaves Brazil and Mexico, the region's two most populous countries, under left-of-center leadership. Brazil's $2.6 trillion economy also appears set to maintain some independence from Washington despite Trump's tariffs and trade pressure.

Election night was marked by confusion at polling stations after a last-minute decision extended voting by two hours. The move, made by a Supreme Court justice, could prompt legal action from Bolsonaro, the report said.

Lula Secures Another Term After Political Comeback

Lula's next term is scheduled to begin Jan. 5, 2027.

A former union leader, Lula helped establish the Workers' Party and won the presidency in 2002 and 2006. His successor, Dilma Rousseff, was reelected in 2014 but impeached in 2016 amid a corruption scandal that also implicated Lula.

Lula was imprisoned for 580 days after a corruption conviction before Brazil's Supreme Court annulled his sentence, citing concerns over judicial bias. He later defeated former President Jair Bolsonaro in 2022.

After finishing behind Flávio Bolsonaro in the first round, Lula reshaped his campaign around younger voters, democratic values and concerns about another Bolsonaro administration.

He also highlighted national sovereignty, arguing that a Bolsonaro presidency could give Washington greater influence over Brazil.

Brazil ETFs, ADRs Slide In Overnight Trading

Brazilian equities fell in overnight trading, with the iShares MSCI Brazil ETF (EWZ) down 18.36%, the Franklin FTSE Brazil ETF (FLBR) slipped 10.31% and the iShares MSCI Brazil Small-Cap ETF (EWZS) declined 17.80%.

Brazilian American depositary receipts also declined during the same period, with Itaú Unibanco Holding (ITUB) falling 13.86%, Ambev (ABEV) dropping 9.39% and Vale (VALE) slipping 3.15%.

In addition, Nu Holdings Ltd. (NU) fell 11.54% and Embraer S.A. (EMBJ) slipped by 0.54%.