Brazil and India forge strategic alliance amid U.S. tariff onslaught

08/10/2025 / By Kevin Hughes

Brazilian President Luiz Inácio Lula da Silva and Indian Prime Minister Narendra Modi reaffirmed their strategic partnership during a phone call, pledging to deepen cooperation in trade, technology, energy, defense, agriculture and health amid U.S. pressure. They aim to boost bilateral trade to over $20 billion annually by 2030.
The leaders condemned President Donald Trump’s unilateral 50 percent tariffs on their goods, criticizing U.S. tactics for undermining multilateralism. Lula emphasized the need for a collective BRICS (Brazil, Russia, India, China, South Africa) response.
Facing U.S. tariffs, India signaled a potential realignment—Modi plans his first China visit in seven years, reflecting a search for alternative alliances while balancing ties with Washington.
The Brazilian president vowed to mobilize BRICS leaders (including China’s Xi Jinping) for a coordinated countermeasure. He also reiterated engagement with the U.S. on global issues like climate change, despite trade tensions.
The partnership between Brazil and India highlights a broader trend of Global South nations resisting U.S. unilateralism, potentially reshaping global trade dynamics and promoting fair multilateral practices.

In a bold move to counter escalating trade tensions, Brazilian President Luiz Inácio Lula da Silva and Indian Prime Minister Narendra Modi have reaffirmed their commitment to a strategic partnership, vowing to deepen cooperation across multiple sectors.

This development comes in the wake of U.S. President Donald Trump’s imposition of steep tariffs on goods from both countries, which has sparked a wave of global economic uncertainty and diplomatic realignment.

During a one-hour phone call on Thursday, Aug. 7, Lula and Modi discussed the “imposition of unilateral tariffs” by the U.S., which has imposed a 50 percent tariff on Brazilian and Indian goods, citing various geopolitical and trade-related disputes.

The Brazilian president’s office stated that the leaders “reiterated their goal of boosting bilateral trade to more than 20 billion annually by 2030,” a significant increase from the 12 billion recorded last year.

In a statement, Modi’s office emphasized the “strong, people-centric partnership between Global South nations,” highlighting the mutual benefits of enhanced cooperation.

The leaders agreed to expand their collaboration in trade, technology, energy, defense, agriculture and health, underscoring their commitment to a multifaceted strategic partnership. Both leaders expressed their support for multilateralism and fair trade practices, condemning Trump’s unilateral approach.

Lula, in particular, criticized Trump’s tactics, stating, “What President Trump is doing is tacit — he wants to dismantle multilateralism, where agreements are made collectively within institutions, and replace it with unilateralism, where he negotiates one-on-one with other countries.”

The Brazilian president further emphasized the need for a collective response from the BRICS nations — Brazil, Russia, India, China and South Africa — to address the U.S. tariffs. Lula has already initiated conversations with Chinese President Xi Jinping and plans to propose a BRICS summit to coordinate a joint response. (Related: Brazil defies Trump, strengthens BRICS ties amid tariff threats)

India’s diplomatic realignment

India, facing the same 50 percent tariff on its goods, is signaling a potential shift in its global partnerships.

Modi is preparing for his first visit to China in over seven years, suggesting a possible diplomatic realignment amid growing tensions with Washington. This move underscores India’s intent to explore alternative alliances in the face of U.S. pressure.

The Indian prime minister’s office did not explicitly mention Trump or the U.S. tariffs in its statement but noted that the leaders “exchanged views on various regional and global issues of mutual interest.”

This cautious approach reflects India’s delicate balancing act as it navigates the complexities of its relationship with the U.S. while seeking to strengthen ties with other major economies.

Lula, known for his outspoken stance on international issues, has been vocal in his criticism of Trump’s policies. He has vowed to respond firmly to the tariffs and has emphasized his intention to reach out to key global leaders, including Modi and Xi.

In a recent interview, Lula stated, “I am not going to call Trump to negotiate anything, because he doesn’t want to talk. But rest assured, I will call him to invite him to the COP [Conference of the Parties], because I want to know what he thinks about the climate issue.”

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Watch Pepe Escobar explaining why Trump’s tariffs against BRICS will backfire in this clip.

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