India, Brazil Eye Stronger Ties Amid US Trade Heat
- India and Brazil discussed coordinating within BRICS after steep new US duties of up to 50% on their goods.
- Both nations aim to raise bilateral trade from $12 billion in 2023 to over $20 billion by 2030.
- Talks included expanding the Mercosur trade pact and hinted at India recalibrating global ties, with Modi planning his first China visit in over seven years.
Indian Prime Minister Narendra Modi and Brazilian President Luiz Inacio 'Lula' da Silva held a phone conversation, addressing a wide range of issues, including steep new tariffs imposed by the United States on goods from both nations.
The call came a day after Lula told Reuters he planned to raise the matter within BRICS the bloc comprising Brazil, Russia, India, China, and South Africa to discuss a collective approach to counter US measures.
During the discussion, Lula confirmed his state visit to India in early 2026. The Brazilian leader’s office said the two heads of state reviewed the international economic landscape and 'the imposition of unilateral tariffs', noting that Brazil and India are currently the most heavily impacted.
US President Donald Trump this week announced an additional 25% tariff on Indian goods, raising the total duty to 50%, effective August 28. Trump has tied the decision to India’s continued purchase of Russian oil. Brazil faces the same 50% duty on its goods, with lower tariffs applied to specific sectors such as aircraft, energy, and orange juice. Trump linked the Brazilian tariffs to what he called a 'witch hunt' against former President Jair Bolsonaro, who is facing trial over an alleged coup plot.
Despite the trade headwinds, Modi and Lula reiterated their commitment to boosting bilateral trade between India and Brazil to over $20 billion annually by 2030, up from approximately $12 billion in 2023.
The Brazilian president’s office said the two leaders also discussed expanding the scope of the preferential trade agreement between India and the South American trade bloc Mercosur, as well as enhancing cooperation in virtual payment platforms.
While Modi’s official statement did not directly refer to Trump or US tariffs, it confirmed that the leaders 'exchanged views on various regional and global issues of mutual interest'.
India is now signaling that it may seek to recalibrate its global partnerships in response to Washington’s latest trade actions. Notably, Modi is preparing for his first visit to China in over seven years, a move that could indicate a shift in diplomatic priorities.
The call follows Modi’s recent trip to Brasilia last month, underscoring strengthening ties between the two emerging economies amid shifting global trade dynamics.
