High tariffs imposed by the US, reaching up to 50% on Indian and Brazilian goods, have triggered a strategic recalibration in India-Brazil relations. Despite economic disruptions, both nations view these tariffs as an opportunity to deepen collaboration in trade, defense, technology, and agriculture. Recently, Prime Minister Modi and Brazilian President Lula reaffirmed commitments to raise bilateral trade to $20 billion by 2030 and emphasized cooperation in clean energy, digital infrastructure, and defense industry partnerships. Brazil has shown particular interest in India’s indigenous defense technologies, including secure communication systems and air defense systems. Both countries are focusing on building resilient, diversified partnerships, leveraging shared priorities in multilateralism and South-South solidarity amid adverse global trade dynamics. Lula plans a state visit to India in early 2026 to further solidify these ties while navigating challenges posed by US tariffs slated to take full effect by late August 2025.