New Delhi: India and Brazil on Saturday (February 21) signed an agreement on cooperation in critical minerals and rare earths, placing supply chain resilience at the centre of bilateral ties, while adopting a “wait and watch” approach to the fallout from the United States Supreme Court ruling on tariffs that had hit both countries.The minerals pact was among 10 documents concluded following delegation level discussions at Hyderabad House. The visit comes seven months after Prime Minister Narendra Modi’s state visit to Brasilia and marks 20 years since ties were elevated to a Strategic Partnership in 2006.At the post-meeting joint press appearance, Modi said the understanding on critical minerals and rare earths “is a big step in building resilient supply chains”. Lula described cooperation in renewable energy and critical minerals as “at the core of the pioneering agreement that we have signed today”.The agreement comes amid heightened global concern over concentrated supply chains.Critical minerals power electric vehicles, solar panels, smartphones, jet engines and missiles. China currently accounts for roughly 60-70% of global rare earth mining and close to 85-90% of processing capacity, according to industry estimates and geological surveys. In recent years, Beijing has imposed export controls on materials such as gallium, germanium and certain graphite products, citing national security grounds.Against this backdrop, India has sought to diversify sourcing of minerals used in electric vehicles, batteries, renewable energy systems, semiconductors and defence equipment. Officials said Lula presented data on Brazil’s reserves, which are the world’s second largest, and underlined scope for expanded exploration and processing cooperation, noting that a significant portion of reserves remains unexplored. No specific quantitative targets were announced. No specific import targets or investment figures were announced.The minerals cooperation was also framed within a broader clean energy partnership. Modi referred to collaboration in renewable energy, ethanol blending and sustainable aviation fuel, and highlighted Brazil’s active role in the Global Biofuel Alliance.The meeting took place a day after US Supreme Court ruling on February 20 that struck down the tariff imposed by President Trump under an emergency statute on nearly every trading partner.In August 2025, Washington imposed a 50% tariff on Indian exports, split between a 25% “reciprocal” rate and a 25% ‘penalty’ linked to India’s oil imports from Russia. This was reduced to 18% as part of a bilateral trade deal, whose working is still being negotiated. Brazil was also subjected to a 50% levy, officially tied to former president Jair Bolsonaro’s trial, despite the US running a goods trade surplus with Brasilia.Following the setback due to the Supreme Court ruling, Trump announced a 10% global tariff via executive order – and promised to consider other avenues for imposing more tariffs.At a separate media briefing, Ministry of External Affairs Secretary East P. Kumaran confirmed that the issue was discussed but described the situation as fluid.“Yes, there was a discussion on the US trade policy and the implications of the US Supreme Court judgment and both leaders agreed that it is a rather new development and that both sides need to study the implications of this and wait for further developments by the US administration,” he said.He added that it was “too early” to consider any coordinated response, with both sides opting to “wait and watch” as the implications for trade become clearer.“All that was agreed upon was that it is too early and that there is a 10% tariff that President Trump has announced in his press conference yesterday. Now, which are the tariffs that remain, which are the tariffs that go away, all that is being studied in detail by our Commerce Ministry. All that was agreed upon was that these are all very fast-moving developments. It came in late last night and it was agreed that we will wait and watch and see what exactly it means for our trade,” stated Kumaran in answer to further queries.Lula has previously been more outspoken in criticising what he termed trade unilateralism. In his remarks on Saturday, he said that “a turbulent global scenario requires our countries to strengthen and deepen our strategic dialogue” and referred to the need to respond to “trade unilateralism” through deeper engagement between India and MERCOSUR. Modi did not refer directly to the United States or the trade concerns even obliquely in his public comments.Brazil is India’s largest trading partner in Latin America. Bilateral trade reached USD 15.21 billion in 2025, a 25% increase over the previous year.Modi said both sides were committed to taking trade beyond USD 20 billion in the next five years. Lula suggested revisiting that target and aiming for USD 30 billion by 2030, citing the scale of the accompanying official delegation, with 11 ministers 300 businessmen, as evidence of intent.The leaders also backed expansion of the 2009 India MERCOSUR preferential trade agreement, which currently covers 450 tariff lines. Officials said negotiations are ongoing, with sensitivities on both sides in agriculture and selected industrial sectors.Both leaders used their remarks to underline support for multilateralism and reform of global institutions.Modi said that when India and Brazil work together “the voice of the Global South becomes stronger and more confident”. He added that global challenges must be addressed through dialogue and diplomacy and that reform of global institutions was necessary to meet contemporary realities.Lula described India and Brazil as “crucial voices at the UN, at the WTO and G20” and reiterated support for reform of the UN Security Council, including expansion of permanent and non-permanent categories. He said Brazil and India were natural candidates for permanent membership and referred to coordination within the G4 framework.Lula also voiced support for efforts to end the war in Ukraine, alleviate Palestinian suffering and maintain South America as a zone of peace. The agreements signed during the visit covered cooperation in digital public infrastructure, artificial intelligence, supercomputing, semiconductors and blockchain. In defence, Lula referred to the trilateral arrangement involving Mazagon Dock and the Indian and Brazilian navies for maintenance of Scorpene class submarines , while also noting the expanding presence of Brazilian aerospace firm Embraer in India.Health and pharmaceuticals were also discussed. Lula said the two countries have worked for decades in defending equal access to medication, particularly generics, and health sovereignty at the World Health Organization.“There is vast potential for cooperation in the health and pharmaceutical sectors as well. We will work towards increasing the supply of affordable and quality medicines from India to Brazil. At the same time, Ayurveda and traditional medicine will be expanded in Brazil to promote holistic healthcare,” he said.In the joint statement, Brazil condemned “in the strongest terms” the terror attacks in Pahalgam and Delhi last year, with both also condemning terrorism “in all its forms and manifestations including cross-border terrorism”.