Lula visit to India planned, Modi says, as US trade tensions linger

Indian Prime Minister Narendra Modi spoke on Thursday with Brazilian President Luiz Inácio Lula da Silva as New Delhi continues to navigate tariff tensions with the United States under President Donald Trump’s administration.

Modi said closer cooperation between India and Brazil was essential to advancing the shared interests of the Global South and said he looked forward to welcoming Lula to India.

“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,” Modi wrote on X. “Our close cooperation is vital for advancing the shared interests of the Global South. I look forward to welcoming him to India soon.”

The call comes as India faces uncertainty over trade relations with the United States, following the imposition of steep tariffs on Indian exports. Lula confirmed last August that he plans to make a state visit to India in early 2026. He has also said he would seek discussions within the BRICS grouping on responding to tariffs imposed by the Trump administration.

Trump, speaking on the sidelines of the World Economic Forum in Davos on Thursday, expressed confidence that Washington and New Delhi would reach a trade deal, describing Modi as a “fantastic leader” and a “great friend”.

“I have a great respect for your prime minister. He is a fantastic man and a friend of mine. We are going to have a good deal,” Trump said.

It has been nearly five months since tariffs on Indian exports to the United States rose to as high as 50%, half of which Trump described as a “penalty” over India’s purchases of Russian oil. Despite ongoing negotiations, there is no clear timeline for an agreement.

Faltering trade talks

Trade discussions between the two countries began before the tariffs took effect, with formal negotiations starting in March–April last year after an initial green light in February. Recent remarks by Trump administration officials have added to the uncertainty.

US Commerce Secretary Howard Lutnick said earlier that a potential trade deal faltered because Modi did not call Trump, a claim India swiftly rejected. Another Trump aide has said the president approved legislation that could raise tariffs on Indian goods to as high as 500%.

Indian officials said momentum returned after the new US ambassador to India, Sergio Gor, said Washington viewed India as an important partner and that talks were continuing.

Earlier this month, Trump suggested tariffs could still be raised, while again speaking positively about Modi.

“India wanted to make me happy. Modi is a very good guy, and he knew I was not happy,” Trump told reporters aboard Air Force One. “We can raise tariffs on them very quickly.”

Brazil also hit by tariffs

Brazil has also faced trade pressure from Washington. The Trump administration imposed an additional 40% tariff on Brazilian products in July, on top of an earlier 10% levy, following the Brazilian Supreme Court’s conviction of former president Jair Bolsonaro, a Trump ally, over an attempted coup.

The additional 40% tariffs on Brazilian food products — including beef, coffee, cocoa and fruit — were withdrawn in November after rising food prices weighed on Trump’s approval ratings, according to a Reuters/Ipsos poll conducted at the time.