Hours after the U.S. Supreme Court dismantled Trump’s tariff architecture, Lula was in New Delhi signing a deal that gives Brazil more room to maneuver in the trade standoff that follows.
The agreement, signed Saturday alongside Prime Minister Narendra Modi, connects Brazil’s rare earth reserves — the world’s second largest after China‘s — with India’s technology sector. The logic is mutual: India reduces its reliance on Chinese supply, and Brazil expands partnerships in a sector central to its negotiations with Washington.
Rare earths have become a key bargaining chip between Lula and Trump. Washington has been courting Brazilian cooperation as it builds supply chains outside China’s orbit. By deepening ties with India simultaneously, Brazil signals it has options — and that access to its reserves comes through negotiation, not pressure.
The timing reinforces the message. The Supreme Court ruling weakened Trump‘s tariff tools just as Brazil positions itself as an indispensable partner in the critical minerals race. Lula’s diplomacy throughout the tariff crisis has combined engagement with pushback — building rapport with Trump while rejecting unilateral demands.
The approach carries risks. Section 301 investigations into Brazilian trade practices remain open, and Washington retains significant leverage. Trump’s instinct to escalate has not disappeared with one court ruling.
But the India pact illustrates a broader pattern: Brazil is building a network of strategic alliances that give it alternatives beyond the U.S.-China binary. Whether that translates into concrete commercial gains will depend on execution, but the diplomatic positioning is clear.