Indian Prime Minister Narendra Modi and Brazilian President Luiz Inácio Lula da Silva held a phone call on Thursday to discuss the recent tariffs imposed by the United States on products from both countries, reaffirming their commitment to enhancing bilateral trade and cooperation.
The day before this call, Lula stated in an interview with Reuters that he would work within the BRICS group to formulate a collective response to the U.S. tariff policies. The BRICS group includes Brazil, Russia, India, China, and South Africa.
The Brazilian Presidency emphasized that during the call, the leaders discussed the international economic situation and the issue of unilateral U.S. tariffs, noting that India and Brazil have been the most severely affected countries so far.
President Donald Trump recently announced an additional 25% tariff on Indian goods starting from August 28, raising the total tariff rate to 50%. Trump cited this move as a response to India’s continued import of Russian oil.
Brazil has also been hit with similar measures. The U.S. imposed tariffs of up to 50% on Brazilian goods, covering industries such as aircraft, energy, and orange juice. Trump attributed this to former Brazilian President Jair Bolsonaro’s involvement in a coup attempt, condemning it as a “political witch hunt” against his right-wing ally.
Despite the escalating trade pressure, Modi and Lula reiterated their commitment to increasing bilateral trade from around $12 billion to over $20 billion by 2030.
They also discussed expanding the preferential trade agreement between India and Mercosur, promoting interoperability of virtual payment platforms, and other specific cooperation initiatives. Mercosur includes Brazil, Argentina, Uruguay, and Paraguay.
A statement from the Indian Prime Minister’s Office highlighted that the two leaders exchanged views on “multiple regional and global issues” but did not specifically mention the U.S. or Trump.
This call is seen as a continuation of the consensus reached during Modi’s visit to Brasília in July. Lula also confirmed plans to visit India in early 2026 to further deepen bilateral relations.
According to Reuters, facing new trade pressures from Washington, India is considering adjusting its foreign policy strategy. Modi is scheduled to visit Tianjin, China on August 31 to attend the Shanghai Cooperation Organization (SCO) summit, marking his first visit to China since 2018, in an apparent effort to seek greater strategic maneuvering space between the U.S. and China.
In response to India potentially aligning with the collective stance of BRICS nations, Trump issued a warning on his Truth Social platform in early July, stating that “any country aligning with anti-U.S. policies of BRICS nations will face an additional 10% tariff, with no exceptions.”
This recent dialogue reflects the complexities and dynamics of global trade and diplomatic relations, as countries navigate competing interests and seek to protect their economies in an increasingly interconnected world.