The United States has officially removed Brazilian Supreme Court Justice Alexandre de Moraes from its sanctions list, reversing a controversial decision made earlier this year. The move signals a softening in relations between Washington and Brasília after months of strain linked to the trial of former Brazilian President Jair Bolsonaro. Documents released by the U.S. Treasury show that Justice de Moraes, his wife, and the Lex Institute, which she leads, are no longer subject to sanctions. Brazilian officials welcomed the decision, calling it a diplomatic win following direct talks between U.S. President Donald Trump and Brazilian President Luiz Inácio Lula da Silva. The sanctions were first imposed in July, when U.S. officials accused de Moraes of abusing his authority. At the time, the Trump administration claimed the judge authorized unfair pretrial detentions and limited freedom of expression during investigations tied to Bolsonaro and his allies. The decision drew strong criticism from Brazil’s government and legal community. A senior U.S. official said the reversal came after Brazil’s lower house passed an important amnesty bill. Washington viewed this step as a sign that legal and political tensions in Brazil were easing. The official spoke anonymously due to the sensitivity of diplomatic discussions. Justice de Moraes has played a central role in recent Brazilian political cases. He led proceedings against Jair Bolsonaro, who was accused of plotting to remain in power after losing the 2022 election. Bolsonaro was later convicted and sentenced to more than 27 years in prison. He began serving his sentence last month while seeking house arrest due to health concerns. Despite fears of unrest following Bolsonaro’s arrest, large-scale protests did not occur. Still, the former president remains influential ahead of Brazil’s next elections, and his legal fate continues to divide the country. The sanctions issue also affected technology policy. In August 2024, de Moraes ordered the temporary suspension of Elon Musk’s X platform in Brazil over concerns about misinformation. The ban lasted two months before being lifted. At the time, Musk was a close ally of President Trump and supported his campaign efforts. Relations between the two governments had been tense since Bolsonaro’s trial began. President Trump publicly criticized the case, calling it unfair and politically driven. In a letter shared online earlier this year, he urged President Lula to end what he described as a “witch hunt” against Bolsonaro. Brazil’s current administration rejected those claims. Officials argued that the judiciary acted independently and within the law. After the sanctions were lifted, Brazil’s government framed the move as a setback for Bolsonaro’s family and supporters. Brazil’s minister for institutional relations said President Lula personally raised the issue during talks with Trump. She described the outcome as the result of respectful and sovereign dialogue between the two leaders. Eduardo Bolsonaro, a lawmaker and son of the former president, expressed disappointment over the decision. He had moved to the United States earlier this year to lobby U.S. officials on behalf of his father. Despite the reversal, he said he would continue his efforts to defend Jair Bolsonaro. The sanctions were initially imposed under the Global Magnitsky Act, which targets alleged human rights abusers and corrupt officials. Justice de Moraes previously called the use of the law against him illegal and unjustified. Trade tensions also played a role in the broader dispute. In July, the U.S. imposed steep tariffs on Brazilian goods, citing political and economic concerns. Some of those tariffs were later lifted, including on key products like beef and coffee. The United States recorded a trade surplus of nearly $7 billion with Brazil last year. Diplomatic ties began improving in recent months. Trump and Lula met during the United Nations General Assembly in September, followed by a private meeting in October and several phone calls. Brazilian officials said ending the sanctions was a top priority in those talks. The removal of sanctions marks a turning point in U.S.-Brazil relations and may open the door to closer cooperation after a period of sharp political disagreement.