Modi and Lula Discuss US Tariffs, Eye Closer Ties as Trade Pressures Mount

Indian Prime Minister Narendra Modi and Brazilian President Luiz Inacio “Lula” da Silva held a phone call on Thursday, addressing a growing list of shared concerns — with US tariffs topping the agenda.

The conversation came just a day after US President Donald Trump announced steep new trade penalties, doubling duties on Indian goods to 50% and matching that rate for most Brazilian exports. Both countries are currently the hardest hit by Trump’s latest tariff wave, which Washington says is aimed at punishing India for continuing Russian oil purchases and Brazil for political tensions tied to former President Jair Bolsonaro’s coup plot trial.

According to Lula’s office, the two leaders discussed “the imposition of unilateral tariffs” and broader economic challenges, agreeing that Brazil and India need to work in closer alignment. Lula also confirmed a state visit to India in early 2026 and hinted at raising the tariff issue within BRICS — the economic bloc that includes Brazil, Russia, India, China, and South Africa.

The pair reaffirmed their goal of boosting annual bilateral trade from roughly $12bn today to over $20bn by 2030, with plans to expand the India–Mercosur preferential trade deal and explore integration between their virtual payment systems.

While Modi’s office avoided direct mention of Trump or the tariffs, it said the leaders “exchanged views on various regional and global issues of mutual interest.”

Behind the diplomatic courtesies, however, both capitals are recalibrating their foreign policy moves. Lula is calling for a coordinated BRICS response to US trade pressure, and Modi — facing a tougher Washington — is preparing for his first visit to China in over seven years, signalling a potential realignment.