Modi speaks with Lula, plans Xi meeting as ties with US sour

Sudhi Ranjan Sen and Daniel Carvalho, Bloomberg News on Aug 7, 2025

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Indian Prime Minister Narendra Modi talked trade with his Brazilian counterpart and is expected to head to China for the first time in seven years in August, against the backdrop of worsening ties with the U.S.

Brazil’s President Luiz Inacio Lula da Silva and Modi discussed the imposition of unilateral tariffs against their nations and reiterated plans to strengthen trade ties in a Thursday call that lasted nearly an hour, the Brazilian government said in a statement.

Although it didn’t mention Donald Trump by name, Lula’s government noted that “Brazil and India are, to date, the two countries most affected” by the wave of levies the U.S. leader has unleashed.

Modi will also attend a summit of the Beijing-led regional security grouping — the Shanghai Cooperation Organisation — and hold a bilateral meeting with President Xi Jinping on the sidelines, officials in New Delhi said, asking not to be identified to discuss internal matters. The SCO summit is scheduled to be held in Tianjin on Aug. 31 and Sept. 1.

India’s Ministry of External Affairs didn’t immediately respond to an email seeking further comment.

While Modi’s call with Lula and the trip to China were previously scheduled, they take on added significance after Trump slapped India with 50% tariffs to penalize it for its trade barriers and purchases of Russian oil. India has signaled it won’t halt purchases of Russian energy and has described the U.S. tariffs as “unjustified.”

Asked on Thursday about the possibility of speeding up trade talks with India, Trump replied: “No, not until we get it resolved.”

India, Brazil, China and Russia are founding members of the BRICS group of nations, which Trump has slammed as being anti-U.S. Brazil has also been hit with 50% tariffs by the U.S. leader.

Bolstering commercial ties between Brazil and India was a key topic of Modi’s visit to Brasilia in July. During Thursday’s call, Lula and Modi also agreed to expand India’s trade deal with Mercosur, the South American customs union that includes Brazil.

The call included confirmation of Lula’s plans to visit India next year, according to the Brazil statement. They also discussed their nation’s virtual payment systems, including Brazil’s Pix, which is currently under trade investigation by the U.S.

Xi and Modi last met in October on the sidelines of the BRICS summit in Kazan shortly after both countries agreed to pull back troops from the disputed Himalayan border. The two sides have been stabilizing ties since a 2020 border clash left 20 Indian and an unknown number of Chinese soldiers dead.

Xu Feihong, China’s ambassador to India, gave Modi moral support over the tariffs on Wednesday.

“Give the bully an inch, he will take a mile,” Xu wrote on X over a quote from Chinese Foreign Minister Wang Yi denouncing the use of tariffs “as a weapon to suppress other countries.”

India’s National Security Advisor Ajit Doval is currently in Moscow, while External Affairs Minister Subrahmanyam Jaishankar is expected to visit there on a prior scheduled trip. Modi is expected to host Russian President Vladimir Putin in India later this year.