Modi, Lula Discuss Strengthening India-Brazil Ties Amid US Trade Tensions

Prime Minister Narendra Modi on Thursday spoke with Brazilian President Luiz Inácio Lula da Silva amid ongoing tariff tensions between India and the United States under the Donald Trump administration.

Modi emphasised that close cooperation between India and Brazil is crucial for advancing the shared interests of the Global South and expressed his eagerness to welcome Lula to India soon. “Glad to speak with President Lula. We reviewed the strong momentum in the India-Brazil Strategic Partnership, which is poised to scale new heights in the year ahead. Our close cooperation is vital for advancing the shared interests of the Global South. I look forward to welcoming him to India soon,” Modi wrote on X.

The phone call comes as India continues to face trade friction with the US. Lula had confirmed in August that he plans to visit India in early 2026 and previously said he would initiate discussions among BRICS nations to address tariffs imposed by Trump.

On Thursday, Trump expressed optimism about reaching a trade deal with India, calling Modi a “fantastic leader” and “great friend” during his address at the World Economic Forum in Davos. “I have great respect for your prime minister (Modi). He is a fantastic man and a friend of mine. We’re going to have a good deal,” Trump said.

The trade tensions began nearly five months ago when the US imposed tariffs of up to 50% on Indian exports, half of which Trump labelled as a “penalty” over India’s purchase of Russian oil. Formal trade talks between India and the US began in March-April last year, but uncertainty remains over if or when a deal might be finalised.

Recent remarks from Trump aides have added to the uncertainty. US Commerce Secretary Howard Lutnick claimed that a potential trade deal fell through because Modi “did not call” Trump, while another aide suggested that Trump could approve tariffs as high as 500% on Indian goods. India quickly dismissed these claims.

Hope for resolution returned after the new US ambassador to India, Sergio Gor, said that the US continues to consider India an important partner and that trade negotiations are ongoing. However, Trump recently hinted that tariffs could still be increased, saying, “India wanted to make me happy. Modi is a very good guy, and he knew I was not happy. We can raise tariffs on them very quickly.”