High tariffs imposed by the US under President Donald Trump are seen by Brazil’s Ambassador to India, Kenneth Felix Haczynski, as both a significant challenge and a strategic opportunity for Brazil to diversify trade relations and strengthen partnerships, especially with India.
The tariffs, which include a 50% levy on goods from both Brazil and India, mark the highest US tariff rates since the Great Depression and have complicated the bilateral and multilateral trade landscape, particularly as negotiations for an interim India–US trade deal falter.
India faces additional complications, with a minimum 25% tariff on most goods and a threatened further 25% tariff unless India discontinues oil purchases from Russia. President Trump’s orders also suspend duty-free tax perks for many nations, raising the effective rate above 17%, and specifically targeting Brazil with a 50% tariff on certain copper products.
These measures are rationalised by the US under the banner of “reciprocal tariffs” to match or exceed those imposed by trading partners.
Ambassador Haczynski underscores that the move, while economically disruptive, propels Brazil to seek out and deepen cooperation with trusted partners.
His remarks highlight the importance of long-standing Brazil–India ties and indicate the countries’ shared intention to expand collaboration—not just in trade, but also in technology, defence, agriculture, energy, and health.
Noteworthy is the progress made during PM Modi’s historic state visit to Brazil, the first in over 20 years, followed by fruitful leader-level discussions on a strategic roadmap for bilateral relations.
Brazil has signalled openness to tariff negotiations, but within clear boundaries respecting national sovereignty and the centrality of Brazilian interests. Brazil’s broader position has been to advocate for international law and multilateral trading norms, urging the World Trade Organization (WTO) to review the US tariff actions.
India’s response—emphasised by Prime Minister Modi—is resolute protection of domestic interests, particularly in agriculture and dairy, sectors vital to millions of livelihoods.
Modi’s refusal to accede to US demands despite steep tariffs signals a prioritisation of local industries over external pressure.
As bilateral negotiations meander and punitive levies bite, both Brazil and India are reconfiguring their foreign trade strategies towards greater self-reliance and trusted alliances.
Across the spectrum, the economic impact is profound: Brazilian and Indian exports to the US will face sharply reduced competitiveness, likely affecting employment, investment flows, and global supply chains.
Yet these adverse effects are being channelled by both countries into proactive efforts to foster collaboration where interests align, including technology exchange (such as fertiliser innovations), trade in staples (edible oils, pulses), and investment in critical sectors.
The current tariff environment has forced Brazil and India into recalibrating their foreign policy and trade priorities—shifting the narrative from confrontation with the US to constructive engagement between themselves and with other like minded nations.
The stance taken by Brazil’s Ambassador encapsulates this adaptive posture: recognising the harm but focusing on the latent opportunity to create resilient, diversified, and mutually beneficial partnerships.
Based On ANI Report
