India-Brazil Strategic Call: Modiji and Lula Unite Amid Trump’s Tariff Offensive
- MGMMTeam
- Aug 9
- 4 min read
In a significant development on the global stage, Brazilian President Luiz Inácio Lula da Silva held an hour-long phone conversation with Indian Prime Minister Narendra Modi to address the growing concerns surrounding the U.S. President Donald Trump’s recent decision to impose a sweeping 50% tariff on exports from both Brazil and India. While the official Indian statement kept the focus broad, referring to “global and regional issues of mutual interest,” the Brazilian side was more direct, calling the tariffs “unilateral and protectionist.” This exchange comes at a critical moment as both countries reassess their positions in an increasingly multipolar world marked by assertive trade policies from the West.
A Focused Dialogue on Trade and Sovereignty
President Lula’s outreach was not simply a gesture of solidarity—it reflected Brazil’s growing urgency to build counterbalances against Washington’s economic aggression. With the new U.S. tariff regime targeting strategic exports like pharmaceuticals, IT services, steel, and agricultural products, Lula emphasized the need for a united response. While India has chosen not to publicly criticize the U.S., New Delhi is clearly concerned, given the volume of trade affected and the geopolitical signaling behind the move.
The conversation served as an important platform to reaffirm the strategic alignment between the two major Global South economies. Both leaders expressed shared views on economic sovereignty, resilience against external pressures, and the importance of multilateral platforms like BRICS and the G20 in countering Western trade dominance.
Trade Targets and Economic Partnership Expansion
One of the most tangible outcomes of the conversation was the reaffirmation of an ambitious trade target. Both countries aim to raise their bilateral trade volume from approximately USD 12 billion to over USD 20 billion by 2030. This goal is more than symbolic; it marks a clear intention to diversify trade relations away from dependency on the U.S. and the European Union.
To achieve this, India and Brazil are expanding the scope of their Preferential Trade Agreement under the Mercosur bloc. The call also emphasized strengthening cooperation in energy, defence, food security, space technology, and health sectors. India’s growing technological capacity and Brazil’s resource wealth provide fertile ground for a dynamic and complementary partnership.
Digital Finance as a Frontier of Cooperation
A particularly forward-looking aspect of the conversation was the discussion on digital public infrastructure. India’s UPI (Unified Payments Interface) and Brazil’s PIX system are considered global benchmarks in real-time digital payments. Modiji and Lula discussed the potential for interoperability between the two platforms, which could revolutionize cross-border transactions between emerging markets.
This digital cooperation aligns with the broader strategy of economic de-dollarization and empowerment of local currencies, another area where BRICS nations have shown increasing interest. Lula and Modiji agreed that technology-driven financial inclusion can serve as a model for the Global South, reducing dependency on Western financial institutions and payment systems.
High-Level Engagements on the Horizon
In a move that underscores the growing warmth in India-Brazil ties, President Lula confirmed his visit to India in early 2026. Prior to that, Brazilian Vice President Geraldo Alckmin will lead a delegation of ministers and business leaders to India in October 2025. The visit will coincide with a session of the Trade Monitoring Mechanism—designed to fast-track commercial and strategic agreements.
These upcoming engagements are expected to consolidate not just bilateral trade, but also align diplomatic postures on multilateral issues. With India set to assume the BRICS presidency in 2026, the timing is ripe for the two nations to spearhead reforms in global governance structures, particularly around trade and technology.
Responding to Trump: Between Caution and Resistance
Donald Trump’s new tariff offensive has rattled multiple economies, particularly in Asia and Latin America. While Brazil has openly criticized the decision as “economic bullying,” India has taken a cautious stance, mindful of its delicate balancing act between East and West. However, Modiji’s call with Lula signals that India is open to recalibrating its approach if Washington’s pressure tactics continue.
Global analysts have described Trump’s trade policy as “xenophobic autarky” and a “beggar-thy-neighbour” strategy, especially targeting nations that pursue independent foreign policies or engage with Russia and China. Both India and Brazil fall into that category—Brazil for its post-Bolsonaro pivot and India for its oil trade with Russia and increasing closeness to the BRICS bloc.
Conclusion: A New Axis of Strategic Autonomy
The Modi-Lula phone call may go down as more than just a diplomatic formality—it is a clear indication that the world’s largest democracies in the Global South are beginning to build a parallel axis of strategic autonomy. In an era where unilateralism is resurfacing in the form of economic coercion, India and Brazil are choosing cooperation, innovation, and solidarity.
By setting firm trade goals, exploring cutting-edge digital collaborations, and aligning their multilateral positions, Modiji and Lula have opened a new chapter in India-Brazil relations. As these developments unfold, the world will likely witness the emergence of a stronger, more interconnected Global South—capable of asserting its interests in a fragmented world order.
(Sources: Hindustan Times, News18, India Today)
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