'Strong ties between Global South...': PM Modi gets call from Brazil's Lula amid US tariff tensions

Amid tariff tensions with the US, Brazilian President Lula da Silva on Thursday dialled Prime Minister Narendra Modi. During the call, Prime Minister Modi recalled his visit to Brazil last month, where the two leaders had agreed on a comprehensive framework to enhance cooperation in areas such as trade, technology, energy, defense, agriculture, health, and people-to-people ties. 

Building on these discussions, both leaders reaffirmed their commitment to advancing the partnership to new heights, while also exchanging views on various regional and global issues of mutual interest, the Prime Minister's Office said in a statement. "They agreed to stay in close contact moving forward."

In a tweet following his conversation, Modi said, "Had a good conversation with President Lula. Thanked him for making my visit to Brazil memorable and meaningful. We are committed to deepening our Strategic Partnership, including in trade, energy, tech, defence, health and more. A strong, people-centric partnership between Global South nations benefits everyone."

The timing of these talks is significant. Just a day before, US President Donald Trump had imposed a 50% tariff on Indian goods, citing New Delhi's continued purchase of Russian oil. Trump has slapped 50% tariff on Brazil. The new tariffs come as part of a broader US strategy to apply pressure on BRICS countries, with India and Brazil facing the brunt of the penalties.

The US has singled out these nations for harsh tariff hikes, with Brazil and India facing the highest 50% tariff rates, while China and South Africa are subjected to lower 30% tariffs. These moves have raised concerns within the BRICS bloc, particularly as President Lula has been vocal about Trump’s unilateral approach. 

Lula earlier this week expressed his frustration with the US, saying, "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. What bargaining power does a small Latin American country have against the United States? None."

The Brazilian President had said he would initiate discussions with Modi and Chinese President Xi Jinping, aiming for a joint BRICS response to the escalating US pressure. "I'm going to try to discuss with them about how each one is doing in this situation, what the implications are for each country, so we can make a decision," Lula added.