Washington DC - The US Treasury Department lifted sanctions Friday on Brazil Supreme Court Justice Alexandre de Moraes, who oversaw a trial of his country's former president Jair Bolsonaro.

Moraes was sanctioned in July and Washington took aim at his wife Viviane Barci de Moraes a few months later.

But both sanctions have since been eased, as the countries move to repair tense relations.

A senior official from President Donald Trump's administration told AFP that "continued designation is inconsistent with US foreign policy interests."

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After a flurry of negotiations, the Trump administration exempted key Brazilian exports from a punishing 40% tariff last month, including beef, coffee, and tomatoes.

Trump had imposed the additional tariff in response to the trial of his ally Bolsonaro.

Far-right Bolsonaro has been serving a 27-year term since November, after his conviction for a scheme to stop President Luiz Inacio Lula da Silva from taking office after the 2022 elections.

Lula and Trump agreed in a phone call this month to intensify cooperation against organized crime, after both men held their first official meeting in October.

This ushered in improved ties following months of growing animosity between Brasilia and Washington.

On Friday, the senior Trump administration official said: "The United States sees the passage of an important amnesty bill by Brazil's lower house as a step in the right direction that signals lawfare conditions in Brazil are improving."

In imposing the sanctions earlier this year, US Treasury Secretary Scott Bessent said Moraes had "taken it upon himself to be judge and jury in an unlawful witch hunt against US and Brazilian citizens and companies."

The Treasury statement announcing these sanctions accused Moraes of using "his position to authorize arbitrary pre-trial detentions and suppress freedom of expression."

Sanctions targeting a Sao Paolo firm linked to the family were also lifted on Friday.