Indian Prime Minister Narendra Modi and Brazilian President Luiz Inacio Lula da Silva have spoken by phone regarding various issues, including the tariffs recently imposed by the United States on goods from both nations.
Lula confirmed a state visit to India in early 2026 during the call on Thursday, a day after the Brazilian leader told Reuters news agency he would initiate a conversation among the BRICS group of countries on addressing US President Donald Trump’s tariff measures.
The group of major emerging economies also includes China, Russia and South Africa.
Lula’s office confirmed that in the call, both leaders discussed the international economic situation and the unilateral tariffs affecting Brazil and India, which are among the nations most impacted by Trump’s actions.
Trump recently imposed a 25% tariff on Indian goods, raising the total tariff to 50%, alleging that India continues to purchase Russian oil.
He also imposed similar tariffs on Brazil, affecting sectors including aircraft, energy, and orange juice.
During the conversation, Modi and Lula reiterated their goal of increasing bilateral trade to over $20 billion annually by 2030, up from approximately $12 billion last year.
They also agreed to enhance the scope of their preferential trade agreement and discussed virtual payment platforms to facilitate trade.
Modi ready to ‘pay a heavy price’
In parallel, Modi has expressed a willingness to “pay a very heavy price” to resist US pressure to alter India’s trade policies in light of the punitive tariffs.
In an executive order signed on Wednesday, Trump imposed India with an additional 25% tariff, for continuing to purchase large quantities of Russian oil. It came on top of a 25% tariff for Indian exports already announced by the US president.
India’s foreign ministry labeled the new tariffs as “unfair” and accused the US of double standards.
Modi reaffirmed his commitment to protect Indian farmers and their interests, stating that such policies are “non-negotiable on principle.”
His government’s firm stance has led to criticism from opposition parties, which claim the tariffs signal a shift in US relations with India, once viewed as a “special relationship.”
Despite ongoing trade negotiations, analysts suggest that the significant tariffs imposed will lead to substantial economic impacts across various sectors in India, particularly textiles and automotive components, risking trade advantages against competitors like Vietnam and Bangladesh.
Modi’s government is now faced with the challenge of balancing its strategic autonomy while seeking new trade avenues to mitigate the risks posed by US tariffs.
The Congress party president, Mallikarjun Kharge, denounced the US attempt to use tariffs to coerce India into shifting its trade and foreign policies.
“India’s national interest is supreme,” said Kharge. “Any nation that arbitrarily penalises India for our time-tested policy of strategic autonomy … doesn’t understand the steel frame India is made of.”
