- Global trade weaponised as tariffs reshape economic negotiations
- Nirmala Sitharaman speaks at India Economic Conclave 2025
Delhi/Hyderabad, Dec 17 (Maxim News): Global trade is increasingly getting weaponised through tariffs and other measures, Finance Minister Nirmala Sitharaman said on Wednesday. She warned that India must negotiate carefully in the changing global trade environment. She also stressed that the strength of India’s economy will provide the country with an added advantage in dealing with such challenges.
Speaking at the Times Network’s India Economic Conclave 2025, Sitharaman said, “Trade is getting weaponised through tariff, through many other measures and India will have to negotiate its way carefully in this, and not just take care of tariff but I think overall our economy strength is what is going to give us that additional advantage.” She further stated that it is now “very clear” globally that trade is no longer free and fair.
The Finance Minister also responded to criticism often directed at India over its trade policies. “India can be lectured saying you (India) are very inward-looking, you are a tariff king and so on. But tariff has been weaponized,” she said. However, she clarified that India never intended to weaponise tariffs. According to her, India only acted to safeguard its domestic industries from being flooded by imports, which she described as coming from a “predator”.
Meanwhile, Sitharaman pointed out what she called double standards in the global trade system. She said the weaponisation of trade is happening without criticism. She noted that while some nations argue that tariffs are harmful and should not be used, “suddenly we have newer people coming up saying we’ll come up with tariff barriers and there’s no questioning. So that seems to be the new normal”. Her remarks highlighted growing inconsistencies in how global trade rules are applied.
Later, she linked her comments to recent global developments. These remarks come at a time when global trade has faced disruption due to high tariffs imposed by the United States. Mexico has also recently announced plans to impose high tariffs on countries with which it does not have free trade agreements. Therefore, Sitharaman’s comments underline the need for India to remain cautious and strategic as global trade dynamics continue to shift. (Maxim News)
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