India, Brazil explore trade boost amid US tariff hike

India and Brazil have held discussions on ways to boost bilateral trade and investment in the backdrop of the Trump administration's increase in import tariffs.

Officials of the two nations met here on Tuesday under the India-Brazil Trade Monitoring Mechanism (TMM) to discuss the fallout of the additional US tariffs.

The TMM mechanism provides a platform for the two countries to discuss trade-related issues, identify areas of cooperation and address trade concerns.


The meeting focused on expanding the preferential trade agreement between India and the South American trading bloc MERCOSUR, according to an official statement by the Brazilian government. The sides also explored ways to enhance collaboration in key sectors such as pharmaceuticals, chemicals, MSMEs (micro, small and medium enterprises) and finance.

The talks, led by Indian commerce secretary Rajesh Agrawal and Brazilian secretary of foreign trade Tatiana Lacerda Prazeres, marked a significant step towards strengthening trade relations between the two nations, officials said.

In August, the US increased tariffs on imports from Brazil by up to 50%. Some say the move was in part because of Brasilia's prosecution of former president Jair Bolsonaro, which Trump called a "witch-hunt." Last month, Bolsonaro was sentenced to 27 years and three months in prison after being found guilty of plotting a military coup.

Washington also increased tariffs on Indian imports by up to 50%. Of this, 25% constituted a punitive levy for its continuing purchase of Russian oil.