Lula Speaks To Xi, Plans Call With PM Modi As BRICS Prepares Response To Trump’s Tariff Offensive

Last Updated:August 07, 2025, 15:08 IST

Lula said the time has come for emerging economies to push back and defend multilateral institutions from what he views as a systematic undermining by the United States.

Brazil President Lula is likely to call PM Modi first. (Pics: AFP)

Brazilian President Luiz Inácio Lula da Silva has vowed to bring up US President Donald Trump’s escalating tariffs at the upcoming BRICS forum, signalling a potential coordinated pushback by emerging economies. Lula has accused Washington of adopting a “unilateral" and “anti-multilateral" trade approach that threatens the balance of global cooperation.

The Brazilian president has already spoken to Chinese President Xi Jinping and is planning to reach out to Indian Prime Minister Narendra Modi next, as part of a broader effort to initiate a collective BRICS response to the US tariffs.

Meanwhile, China has thrown its weight behind Brazil. In a phone call with President Lula’s chief advisor Celso Amorim, Chinese Foreign Minister Wang Yi reaffirmed Beijing’s support for Brazil’s sovereignty and right to development and called for deeper strategic ties through BRICS.

“Using tariffs as a weapon to suppress other countries violates the UN Charter, undermines WTO rules, and is both unpopular and unsustainable," said Chinese Foreign Minister Wang Yi to Brazil President Lula’s chief advisor. 

“What President Trump is doing is tacit — he wants to dismantle multilateralism, where agreements are made collectively within institutions, and replace it with unilateralism, where he negotiates one-on-one with other countries," Lula said. “What bargaining power does a small Latin American country have against the United States? None."

Lula said that as Brazil currently holds the BRICS presidency, he would speak with other member states, including Russia and South Africa, to assess how each nation is being affected by the tariffs. “I’m going to try to discuss with them about how each one is doing in this situation, what the implications are for each country, so we can make a decision," he said. “It’s important to remember that the BRICS have ten countries at the G20."

Tensions escalated last month when Trump labelled the BRICS group “anti-American" and threatened an additional 10% tariff on goods from its member states. Several BRICS nations—including India, Brazil, China, and South Africa—have already been hit with some of the highest import tariffs under Trump’s latest trade actions.

Brazil, in particular, became a prime target after Trump linked a 50% tariff on Brazilian exports to what he called a “witch hunt" against former President Jair Bolsonaro. On Wednesday, Trump further threatened another 25% levy on Indian imports over the country’s continued reliance on Russian oil, adding to existing 25% duties. China and South Africa have also faced tariff rates as high as 30%, with some Chinese goods subjected to even more.

Lula said the time has come for emerging economies to push back and defend multilateral institutions from what he views as a systematic undermining by the United States. He made it clear that Brazil, under his leadership, intends to rally its partners toward a coordinated response.

(With inputs from Reuters)

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