Indian Prime Minister Narendra Modi and Brazilian President Luiz Inacio Lula da Silva held a phone conversation on Thursday to discuss a range of bilateral and international issues, including the new tariffs imposed by the United States on goods from both countries.

During the call, Lula confirmed his planned state visit to India in early 2026. The conversation came a day after the Brazilian leader announced to Reuters his intent to raise the matter of US tariffs within the BRICS group, which includes Russia, China, South Africa, India, and Brazil.

Lula’s office stated that both leaders discussed the global economic situation and the unilateral trade measures imposed by the US, which have significantly impacted the economies of both Brazil and India.

Trump imposes new tariffs on India, Brazil

US President Donald Trump has imposed a 25% tariff on Indian goods, increasing the total tariff burden to 50%. The move, according to Trump, is in response to India’s continued imports of Russian oil.

Similarly, Brazil has been hit with new US tariffs targeting multiple sectors, including aviation, energy, and agriculture, specifically orange juice, much of it in retaliation to the trial of former President Jair Bolsonaro on charges of plotting a coup.

India’s Foreign Ministry has criticized the new tariffs as “unfair,” accusing the US of applying double standards. In a firm statement, Prime Minister Modi said he is prepared to “pay a very heavy price” to resist pressure from Washington, reaffirming that India’s trade and energy decisions are “non-negotiable on principle.”

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Meanwhile, Lula has signaled that Brazil will initiate a joint BRICS discussion on how to address the US measures, calling for a collective response from the bloc of emerging economies.

The new tariffs threaten to strain trade relations and could push BRICS nations to deepen economic coordination in opposition to what they describe as unilateral trade practices by Washington.

Despite the rising trade tensions with the US, Modi and Lula reiterated their shared goal of expanding bilateral trade to exceed $20 billion annually by 2030, up from around $12 billion in the previous year.

Both leaders agreed to broaden the scope of their existing preferential trade agreement and discussed the development of virtual payment platforms to facilitate smoother cross-border transactions.

Domestic reactions, strategic autonomy

Within India, the government’s stance has drawn mixed reactions. While Modi emphasized India’s “strategic autonomy” in energy and trade decisions, opposition parties have accused the government of failing to anticipate the consequences of over-reliance on certain geopolitical partnerships.

Congress party president Mallikarjun Kharge condemned the tariffs as a coercive tactic, saying “India’s national interest is supreme,” Kharge said. “Any nation that arbitrarily penalises India for our time-tested policy of strategic autonomy … doesn’t understand the steel frame India is made of.”

Analysts warn that the new tariffs could impact key Indian sectors such as textiles and automotive components, reducing the country’s competitive edge against exporters like Vietnam and Bangladesh.

Modi’s government now faces the challenge of preserving strategic independence while seeking alternative trade routes to offset the economic impact of US protectionism.

Read more: Missteps and miscommunication: How the US-India trade deal faltered