A Union is Needed in Global Trade as Well; Brazil President Lula Against U.S. Tax Strategies

New Delhi: Brazilian President Lula da Silva has called for the formation of a negotiating bloc, rather than countries standing alone against U.S. President Donald Trump’s war-like tariffs on other nations. Speaking in Delhi during the AI Impact Summit, Lula emphasised that a system similar to labor unions, where workers come together to negotiate benefits with employers, is also needed in international trade. He warned that the United States should treat all countries equally, expressing that they do not want a new Cold War.

Challenges Faced by India and Brazil

The U.S. has imposed an additional 50% tariff on India and Brazil due to their membership in the BRICS group, trade with Iran, and oil imports from Russia. Lula mentioned that he plans to discuss these issues during his upcoming visit to Washington next month.

Global South Must Unite

Lula highlighted the challenges faced by smaller countries in negotiations with more powerful nations. He explained that when a small country negotiates alone with a larger country, it will always be at a disadvantage. Drawing from his experience in the labor movement, he stressed that countries from the Global South must unite and support each other in global trade negotiations. He also criticised the current functioning of the United Nations Security Council, asserting that it is wrong to sideline major countries like India and Brazil.

Brazilian President Lula da Silva's Speech in Delhi: A Reflection of a Changing World Order

President Lula’s speech in Delhi is viewed as more than just a diplomatic visit; it is a clear signal of the shifting global order. His call to action resonates with a sense of urgency, underscoring the challenges even a powerful nation like India faces in securing its own rights. Lula made these remarks after completing his four-day visit to India, speaking to the media.

During his visit, the Indian government had accepted the U.S. demand in trade agreements to allow zero-tax imports of American goods, while also agreeing to an 18% additional tax on domestic products. Despite the U.S. Supreme Court ruling against retaliatory tariffs, former President Donald Trump threatened to continue the taxes he had imposed on India.

Global Trade War and the 'Global South' Alliance

Rather than facing economic pressure from the U.S. alone, Lula proposed the idea of forming a "union" of nations to collectively counter such challenges. In the 1980s, Lula was a prominent trade union leader in Brazil, and his experience taught him that an individual worker negotiating alone with a capitalist is doomed to fail. However, when workers unite, they succeed. Lula applies this same logic to international diplomacy. In this context, he views the U.S. as a "big employer" and other nations as "workers," advocating for a fresh approach to global trade relations.

Challenging Dominance: Will Submission Be Overcome?

Lula advocates for strengthening the voice of emerging nations like India, Brazil, and South Africa in global forums, challenging the dominance of developed countries such as the U.S. and Europe. As part of this vision, he calls for permanent membership for India and Brazil in the United Nations Security Council. However, the key question remains whether India, under Prime Minister Narendra Modi’s BJP-led government, will continue to hesitate or take a firm stand on this issue.

Expanding Bilateral Relations

With Brazil's presidential elections scheduled for October, this visit marks one of Lula’s last major foreign trips. In 2025, both countries had agreed to expand bilateral trade. Brazil imported 8.5 billion dollars worth of goods from India, while Brazil's exports to India amounted to 7 billion dollars, with key exports including soybeans, sugar, and iron ore.

During the visit, agreements were signed in critical minerals, steel mining, and digital collaboration between the two nations. As part of the official reception, Lula was honored by having his favorite Brazilian song, "Asa Branca," performed.