Prime Minister Narendra Modi on Thursday spoke to Brazilian President Luiz Inácio Lula da Silva amid tariff tensions with the US below the Donald Trump administration.
Modi mentioned that shut cooperation between India and Brazil is significant for advancing the shared pursuits of the International South. He additionally mentioned that he’s trying ahead to welcoming the BRICS ally to India quickly.
“Glad to talk with President Lula. We reviewed the robust momentum within the India-Brazil Strategic Partnership, which is poised to scale new heights within the 12 months forward. Our shut cooperation is significant for advancing the shared pursuits of the International South. I look ahead to welcoming him to India quickly,” Modi wrote on X.
The Modi-Lula telephone name comes amid New Delhi’s ongoing tariff tensions with US President Donald Trump. Lula confirmed final August {that a} state go to to India would happen in early 2026. He had earlier instructed Reuters that he would provoke a dialog among the many BRICS group of nations on tackling levies imposed by Trump.
Trump on Thursday expressed confidence in a “good” commerce take care of India and referred to as Prime Minister Narendra Modi a “unbelievable chief” and a “nice buddy”. He made the comment on the sidelines of his deal with on the World Financial Discussion board in Davos, Switzerland.
“I’ve an excellent respect to your prime minister (Modi). He’s a unbelievable man and a buddy of mine. We’re gonna have a superb deal,” Donald Trump mentioned in response to a query on the India-US commerce deal by a Moneycontrol journalist.
It has been almost 5 months because the tariffs on Indian exports to the US hit an enormous 50% — half of which was labelled a “penalty” by Trump over India’s buy of Russian oil — and there’s continued uncertainty about when a commerce deal could also be struck, if in any respect.
Faltering US-India commerce deal
Commerce negotiations between officers of the 2 international locations have been underway since earlier than the tariffs took impact, with formal talks starting in March-April final 12 months, following a February greenlight. Statements made by Trump and a few key officers in his administration over the previous few days have additional deepened the thriller.
One in every of Trump’s key aides, US Commerce Secretary Howard Lutnick, claimed {that a} potential commerce deal between India and the US fell via due to Prime Minister Narendra Modi “not calling” the US President. One other aide not too long ago claimed that Trump has greenlit a invoice that would hike tariffs on India to 500%. These appeared like ominous indicators of how Trump sees the way forward for US-India ties, regardless of proclaiming friendship with PM Modi.
India was fast to reject Lutnick’s claims. Hope re-emerged after the brand new US ambassador to India, Sergio Gor, not too long ago mentioned the US considers India an necessary associate and that commerce talks stay underway.
Trump dropped an enormous trace earlier this month that his administration might additional improve tariffs on India. Throughout a media interplay aboard Air Pressure One, Trump referred to as PM Modi “a superb man”.
“India needed to make me completely happy. Modi is an excellent man, and he knew I used to be not completely happy. And it was necessary to make me completely happy. We are able to increase tariffs on them in a short time,” Trump mentioned.
Trump’s tariffs on Brazil
The Donald Trump administration had imposed a 40 per cent tariff on Brazilian merchandise in July on prime of a ten per cent tariff imposed earlier. The tariffs had been in retaliation for the Brazilian Supreme Courtroom’s conviction of Trump ally and Lula’s predecessor, Jair Bolsonaro, for trying a coup.
Nonetheless, the 40 per cent tariffs on Brazilian meals merchandise, together with beef, espresso, cocoa and fruits, had been later withdrawn in November. Rising meals costs had been a significant component behind Trump’s declining approval rankings, which had fallen to their lowest since his return to energy, a Reuters/Ipsos ballot on the time discovered.
