Close cooperation vital: PM Modi speaks to Brazils Lula, discusses ties amid US tariff tensions
Prime Minister Narendra Modi held talks with Brazilian President Luiz Inácio Lula da Silva, stressing closer India–Brazil coordination to advance Global South interests amid ongoing tariff tensions with the United States and uncertainty over an India–US trade deal.
New Delhi: Prime Minister Narendra Modi on Thursday held a telephonic conversation with Brazilian President Luiz Inácio Lula da Silva, underlining the importance of closer coordination between the two countries at a time when India is facing tariff-related frictions with the United States.
Global South cooperation
During the call, PM Modi stressed that stronger India-Brazil engagement is essential to promote the collective interests of the Global South. He also expressed his anticipation of hosting Lula in India in the near future.
"Glad to speak with President Lula. We reviewed the strong momentum in the India-Brazil Strategic Partnership, which is poised to scale new heights in the year ahead. Our close cooperation is vital for advancing the shared interests of the Global South. I look forward to welcoming him to India soon,” PM Modi wrote on X.
Tariff tensions backdrop
The conversation comes against the backdrop of New Delhi’s ongoing tariff dispute with Washington under US President Donald Trump. Lula had earlier indicated that Brazil would raise concerns over Trump-era levies within the BRICS forum.
Last August, the Brazilian President had confirmed that he would undertake a state visit to India in early 2026, further reinforcing bilateral ties between the two strategic partners.
Trump said he held PM Modi in high regard and believed the two countries would eventually arrive at a mutually beneficial deal, signalling personal warmth despite unresolved trade disputes.
Trade talks uncertainty
It has been nearly five months since tariffs on Indian exports to the US were raised to as high as 50 per cent, with half of the levy described by Trump as a penalty linked to India’s purchase of Russian oil. While trade negotiations between officials from both sides began before the tariffs took effect and formally gathered pace last spring, there is still no clarity on when — or if — a deal will be finalised.
Conflicting signals from Washington have added to the uncertainty. US Commerce Secretary Howard Lutnick recently suggested that talks stalled due to a lack of direct outreach from Modi, a claim New Delhi swiftly dismissed. Another senior aide to Trump also indicated that legislation clearing the way for tariffs as high as 500 per cent on India had received the President’s approval, raising fresh concerns about the future of bilateral trade ties.
Some reassurance emerged after newly appointed US ambassador to India Sergio Gor said Washington continues to view India as a key partner and that trade discussions remain active.
Mixed tariff signals
Trump himself has sent mixed messages in recent weeks. Earlier this month, during an interaction with reporters aboard Air Force One, he described Modi as a "good guy” while warning that tariff levels could be raised swiftly if the US administration felt dissatisfied.
Brazil, too, has faced trade pressure from Washington. The Trump administration imposed an additional 40 per cent tariff on Brazilian goods in July, on top of an existing 10 per cent levy, following the conviction of former president Jair Bolsonaro over an alleged coup attempt. However, the higher tariffs on key Brazilian food exports such as beef, coffee and cocoa were rolled back in November amid concerns over rising domestic food prices in the US.