New Delhi — Indian Prime Minister Narendra Modi and Brazilian President Luiz Inácio Lula da Silva have pledged to strengthen economic cooperation and present a united front against what they describe as Washington’s punitive and politically motivated trade measures.
During a phone conversation on Friday, the two leaders discussed the sweeping tariffs recently imposed by US President Donald Trump on both India and Brazil. The measures have sharply escalated trade tensions, with Washington citing India’s continued purchase of Russian oil and Brazil’s growing alignment with BRICS economic strategies as grounds for the penalties.
The White House’s latest move includes a 25 percent tariff on Indian goods, doubling the overall rate to 50 percent. Brazilian exports have been hit with similar barriers, targeting key industries such as aviation, energy, and agricultural products, including orange juice. Economists warn these measures could push up costs for American consumers while forcing targeted nations to deepen alternative trade networks.
Lula, who confirmed a state visit to India in early 2026, told Modi that he intends to raise the tariff issue directly within the BRICS framework, seeking a coordinated response among member states. The bloc, which includes Russia, China, and South Africa, has been steadily expanding trade in local currencies and exploring payment platforms designed to bypass Western financial control.
Modi and Lula also agreed to push bilateral trade beyond the current $12 billion annual level, with a target of $20 billion by 2030. Plans include expanding trade preferences, boosting digital payment integration, and accelerating joint ventures in energy, agriculture, and technology.
In remarks that drew applause from ruling party lawmakers, Modi reaffirmed India’s commitment to strategic autonomy, saying the country was prepared to “pay a very heavy price” rather than bow to US pressure. India’s foreign ministry labeled the tariffs “unfair and coercive,” while opposition leader Mallikarjun Kharge accused Washington of “weaponizing economic policy to impose its will on sovereign nations.”
For Brazil, the measures threaten to undermine Lula’s efforts to boost manufacturing exports and reduce dependency on the US market. Analysts note that both nations see closer alignment within BRICS not as a matter of convenience, but as a long-term hedge against Western economic retaliation.
According to Mehr News, the two leaders’ exchange reflects a broader shift among emerging economies, which are increasingly turning to South-South cooperation to counter what they see as an entrenched pattern of Western trade aggression.
