India And Brazil Discuss US Trade Policy Shift, Adopt Wait And Watch Stance On Supreme Court's Tariff Ruling

New Delhi: Brazilian President Luiz Inacio Lula da Silva, during his visit to India, expressed hopes for a stronger alliance between the two nations amidst global economic uncertainty. Brazilian President Lula's visit was his fifth trip to India as President, which showed the growing importance of India-Brazil relations. Amidst a joint global power presentation in the national capital, the Ministry of External Affairs (MEA) revealed on Saturday that India and Brazil have initiated discussions on the recent developments in US trade policy, particularly in light of the US Supreme Court judgment. 

MEA Secretary (East) P Kumaran stated that Brazilian President Lula da Silva and Prime Minister Narendra Modi held talks on the implications of the US Supreme Court's decision, acknowledging it as a "rather new development" that requires careful study and analysis. 

Kumaran asserted that both leaders have agreed to adopt a wait-and-watch approach, seeking clarity on the US administration's next steps and assessing the impact on their trade relations. The MEA's statement comes as India remained cautious on the shifting US trade policy, outlining the need for careful consideration and diplomatic engagement. Amidst evolving global trade dynamics, India and Brazil have decided to prioritise their economic interests and strategic partnerships.

"Yes, there was a discussion on the US trade policy and the implications of the US Supreme Court judgment. Both leaders agreed that it's a rather new development and that both sides need to study the implications of this and wait for further developments by the US administration. So we will essentially be in a wait-and-watch mode to see how the administration responds to this judgment and whether any further steps are taken and to study the implications for our trade," the MEA Secretary said. 

"About BRICS currency, there is there is no discussion about a BRICS currency. In fact, President Lula had said this in his interview yesterday. There is interest in trying to have some trade on the basis of local currency settlements but there is no discussion for a BRICS currency and I think President Lula had clarified this in ample detail yesterday so I would refer you to that also," he further added. 

The discussions between President Lula and PM Modi come at a critical juncture, with the US Supreme Court's judgment introducing uncertainty into the global trade environment. 

Meanwhile, India and Brazil are working jointly to strengthen their bilateral trade and explore new avenues for cooperation. With bilateral trade between India and Brazil reaching $15.21 billion in 2025, the two nations have huge stakes in ensuring a stable and open global trade environment.

Lula's Traditional Welcome At Rashtrapati Bhavan

Earlier, the Brazilian President was given a traditional welcome at Rashtrapati Bhavan, setting the tone for a productive visit. Lula's delegation, comprising 11 ministers and over 260 business representatives, is the largest-ever Brazilian business delegation to visit India. The visit comes at a crucial time, with global trade dynamics shifting and protectionism on the rise. India and Brazil are seeking to expand their economic partnership, with bilateral trade reaching $15.21 billion in 2025, a 25% increase from the previous year. 

During his visit, Lula participated in the India AI Impact Summit, which explained the importance of technology cooperation between the two nations. He also held comprehensive bilateral talks with PM Narendra Modi, reviewing the entire extent of bilateral relations. 

The discussions focused on trade, investment, energy, defence cooperation, digital technologies, and people-to-people exchanges. The two leaders engaged in in-depth discussions on the margins of the summit, exchanging views on a range of issues, including the ongoing global economic situation and the need for reform of multilateral institutions.

PM Modi and President Lula also stressed the need for UN reforms, with Kumaran describing the strong consensus between India and Brazil on this issue. "UN reforms are important in India-Brazil discussions. We are the G4 members India, Brazil, Germany and Japan. We have permanent membership candidate support. We have UN efforts coordinated for reforms. President Lula talked on that subject on- or multilateralism in WTO or United Nations related organisations," he said. 

The Brazilian President's visit has provided a fresh impetus to the India-Brazil partnership, with both nations committed to working together on global issues.