Lula meets Modi to boost Asia ties amid Trump-era tensions

One of the many side effects of the tariff war waged by Donald Trump against the rest of the world is that it has increased all countries’ interest in seeking trade partners, even in the most remote corners. Proof of this are the official visits to Brazil by the leaders of India — the world’s most populous country — and Indonesia, a major Southeast Asian market, with the leaders taking advantage of the fact that they had already traveled halfway around the globe to participate in the BRICS summit.

“We do not accept any complaints against the BRICS meeting,” said Brazilian President Luiz Inácio Lula da Silva during his appearance alongside Indian Prime Minister Narendra Modi this Tuesday in Brasília.

Lula was referring to the threats made by Trump against those approaching the Global South bloc. “We disagree with the president of the United States when yesterday [Monday] he hinted that he would impose tariffs on countries that negotiate [trade deals] with BRICS,” said the Brazilian leader.

Trump made his presence felt at the bloc’s leaders’ meeting in Rio by threatening — via social media — to impose an additional 10% tariff on countries that align with BRICS, a group of 11 nations that includes China, India, Russia, and Brazil, as well as a dozen associated countries. Lula has never met or spoken with Trump.

“Two superlative countries like India and Brazil cannot remain distant,” said Lula, though the Asian country’s population is seven times larger than that of the South American nation. The bilateral relationship has enormous growth potential. One only has to look at the meager trade exchange between India and Brazil — just $12 billion in 2024 — despite the fact that they have maintained diplomatic relations for 80 years. Strengthening cooperation and trade ties is one of the most achievable goals of BRICS.

No Indian prime minister had officially visited Brazil in almost six decades, notes The Times of India, which also highlighted the 114 horses that participated in the welcoming ceremony.

Lula and Modi, who was received at the Brazilian president’s official residence, signed a cooperation agreement on digital transformation. Brazil has a strong interest in India’s public digital infrastructure, which, as Lula said, “is based on open data, code, and models, in contrast to the monopolistic dynamic of private companies.” The Brazilian government announced several months ago that it is working on creating its own cloud to store public data and digital services, independent of big tech companies.

The Indian prime minister and the Brazilian president also signed agreements in strategic areas such as defense, counterterrorism, and energy transition, where they aim to become models of sustainability. Lula is using summits — both at home and abroad — to recruit allies ahead of the U.N. Climate Conference (COP), which will be held in November in Belém, in the Brazilian Amazon.

Lula’s is just one of many governments around the world now expanding their horizons at full speed, given how volatile the trade relationship with the United States has become. Brazil is showing great interest in signing the EU-Mercosur agreement as soon as possible, which would create the world’s largest free trade area. Lula is determined for it to happen before the end of 2025. As part of his strategy to broaden ties in Asia, Lula will receive Indonesian President Prabowo Subianto this Thursday.

One of the factors that contributed to Chinese leader Xi Jinping’s absence from this BRICS summit is Modi’s state visit — his great and historic regional rival. A few months ago, Xi wrapped up his G20 trip with a visit to Brasília.

Brazil’s growing focus on all of Asia — not just China — is evident. Since returning to power, Lula has visited China twice — once for a state visit and once for a CELAC summit — attended the G20 in India, and three months ago traveled to Japan and Vietnam. “ASEAN [ten Southeast Asian countries] buys more from Brazil than Europe does,” said Brazilian Finance Minister Fernando Haddad in an interview with EL PAÍS during the BRICS summit.

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