Narendra Modi, Indian Prime Minister and Luiz Inacio “Lula” da Silva Brazil’s President have spoken by phone, pledging closer economic cooperation as both countries absorb the impact of steep new United States tariffs on their exports.
The leaders’ conversation on Thursday, confirmed by their offices, ranged from trade expansion to joint responses within BRICS – the bloc of major emerging economies that also includes China, Russia and South Africa. It came just a day after Lula told Reuters he would push BRICS members to address what he called Washington’s “unilateral” trade actions, which now target Brazil and India more heavily than any other nations.
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According to Brasilia, Lula will make a state visit to India in early 2026. The two leaders reaffirmed their goal of increasing bilateral trade from around $12bn last year to more than $20bn annually by 2030.
They also agreed to broaden the scope of the preferential trade agreement between India and Mercosur – the South American trade bloc led by Brazil – and to explore links between their countries’ virtual payment systems.
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The diplomatic push follows Donald Trump, United States President, announcement on Wednesday of an additional 25 percent tariff on Indian goods, taking total duties to 50 percent. The move, effective from August 28, is intended to punish India for continuing to purchase Russian oil. Brazil faces the same top rate on most goods, though some sectors – including aircraft, energy and orange juice – will see lower tariffs. Trump has linked the measures against Brazil to what he described as a politically motivated “witch hunt” against former president Jair Bolsonaro, a right-wing ally facing trial over an alleged coup plot to overturn his 2022 election defeat.
In its statement, Lula’s office directly referenced Trump’s tariffs, noting that Brazil and India were currently the two most affected countries. Modi’s office avoided naming the United States but said the leaders had “exchanged views on various regional and global issues of mutual interest.”
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The call comes as India appears to be recalibrating its foreign policy in response to the trade dispute. Modi is reportedly preparing for his first visit to China in more than seven years – a notable development given the tense state of relations between New Delhi and Beijing in recent years. Analysts say the trip could signal a wider diplomatic realignment, particularly as India weighs its options amid deepening economic friction with Washington.
Lula, who hosted Modi in Brasilia last month, has positioned himself as a champion of a more balanced global economic order, arguing that emerging economies must act together to counter protectionist measures from developed nations. For now, the Modi–Lula conversation suggests that Brazil and India are intent on turning shared challenges into an opportunity for closer strategic and economic alignment.
