Brazilian President Luiz Inacio Lula da Silva and Indian Prime Minister Narendra Modi have reaffirmed their support for multilateralism and fair trade in response to US tariffs. The leaders held a phone call to discuss global economic outlook and rising trade tensions. The talks followed Trump’s imposition of a 50% tariff on Brazilian goods and a separate 50% tariff on Indian imports, both citing political tensions with Brazil and India respectively.
The Brazilian government’s statement highlighted the importance of defending multilateralism and addressing global challenges, while exploring deeper bilateral integration. The tariffs on Brazil were imposed by Trump following allegations of political persecution against former President Jair Bolsonaro, who is facing a trial for allegedly planning a coup. The US move was condemned by Brazil and backed by China, which called it bullying. Trump’s tariffs on India were in response to its oil trade with Russia, a move New Delhi called unfair. Trump has also threatened additional 10% tariffs on BRICS members, a group that has grown to surpass the G7 in economic size. Lula has announced plans to propose a BRICS summit to coordinate a response to US trade pressures.
The economic group BRICS, formed by Brazil, Russia, India, and China in 2006, with South Africa joining four years later, has since expanded and now surpasses the G7 in combined GDP. Trump’s threats of broader tariffs on Russia’s trade partners to pressure Moscow into accepting a ceasefire in the Ukraine conflict have been met with resistance from Moscow, which asserts that sovereign nations are free to choose their trade partners. The tensions between the US and BRICS nations highlight the growing economic and geopolitical rifts in the global landscape.
Brazil, India, and other BRICS members are increasingly looking to assert their own economic influence and challenge Washington’s dominance in global trade. As tensions escalate, the potential for further economic confrontations and the impact on global markets remain significant concerns for policymakers and investors alike.