Nirmala Sitharaman Warns Global Trade Now Weaponised Through Tariffs
Sitharaman warns global trade weaponised through tariffs; India to negotiate using economic strength.
Finance Minister Nirmala Sitharaman on Wednesday highlighted the growing trend of global trade being “weaponised” through tariffs and other restrictive measures, signaling challenges for India in international negotiations. Speaking at the Times Network’s India Economic Conclave 2025, she emphasized that trade is no longer free and fair, with countries increasingly using tariffs strategically.
Sitharaman noted that while India has faced criticism for being “inward-looking” and protective of domestic industries, the country has never intended to weaponise tariffs. Instead, these measures are aimed at safeguarding domestic sectors from unfair flooding by foreign products, she explained.
The minister expressed concern over the emerging global norm where tariff barriers are being imposed without scrutiny or accountability. “Suddenly we have newer people coming up saying we’ll impose tariff barriers, and there’s no questioning,” she said, underlining the need for India to remain vigilant and strategic.
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She stressed that India’s economic strength will serve as a crucial advantage in negotiating trade terms. With a resilient domestic economy, the country can better withstand external pressures and leverage its position in global commerce.
Sitharaman’s remarks come amid disruptions in international trade, driven by high tariffs imposed by major economies such as the US, and similar moves by countries like Mexico targeting nations without free trade agreements. These developments underscore the urgent need for India to adopt a proactive and careful approach in trade diplomacy.
The Finance Minister concluded that India must balance protecting domestic industries while engaging in global markets, ensuring that strategic economic interests are safeguarded amid an increasingly unpredictable trade environment.
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