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The leaders of Brazil and India have held a call and vowed to deepen trade following 50% tariffs imposed by the US on both countries.
Some shit you should know before you read: It’s been a rough two weeks for Brazil and India, as the US has slapped both nations with 50% tariffs. President Trump has cited a mix of political grievances and economic disputes as the reasons for the tariffs. For Brazil, the White House linked the move partly to what it described as unfair trade practices, but also to Trump’s objections over the treatment of former President Jair Bolsonaro, a close political ally now facing criminal charges for allegedly plotting to overturn the 2022 election. India’s tariff hike came in two steps: a pre-existing 25% penalty tied to what Trump calls chronic trade imbalances, and an additional 25% announced this week as punishment for its continued purchases of Russian oil. Trump argues those purchases are fueling Russia’s war effort by providing Moscow with critical revenue from energy sales.
What’s going on now: In a readout provided by the Brazilian government, President Luiz Inácio Lula da Silva and Indian Prime Minister Narendra Modi held a roughly hour-long call on Thursday that focused heavily on trade, economic cooperation, and resisting US tariff pressure. During the conversation, the two leaders “discussed the international economic scenario and the imposition of unilateral tariffs,” noting that “Brazil and India are, to date, the two countries most affected” by the United States’ actions. They reaffirmed their shared goal of boosting bilateral trade from roughly $12 billion in 2024 to more than $20 billion annually by 2030, with Lula’s office saying the two “agreed to expand the reach of the preferential trade agreement between India and Mercosur” and to explore new areas of cooperation in sectors such as defense, agriculture, health, and technology.
The call also touched on innovation in financial systems, with both leaders discussing their respective virtual payment platforms. According to Modi’s office, the exchange was a discussion of “various regional and global issues of mutual interest,” and India remains “committed to deepening our Strategic Partnership including in trade, energy, tech, defence, health and more.” In a post on X after the call, Modi thanked Lula for making his recent visit to Brazil “memorable and meaningful,” adding that “a strong, people-centric partnership between Global South nations benefits everyone.”
This comes as President Lula has made clear he had no intention of opening a direct dialogue with Trump under current conditions. In an interview with Reuters, Lula was quoted as saying, “The day my intuition says Trump is ready to talk, I won’t hesitate to call him.” He added, “Today my intuition says he doesn’t want to talk. And I won’t humiliate myself.”
