FM Sitharaman Flags “Weaponised” Global Trade, Says India Must Navigate Carefully

Finance Minister Nirmala Sitharaman on Wednesday said global trade is increasingly being “ weaponised ” through tariffs and other measures, and India must carefully navigate this evolving landscape. She emphasised that the country’s strong economic fundamentals will provide an added advantage in these negotiations.

Speaking at Times Network’s India Economic Conclave 2025, Sitharaman said, “Trade is getting weaponised through tariffs and many other measures. India will have to negotiate its way carefully, and not just take care of tariffs. The overall strength of our economy is what will give us an additional advantage.”

The minister highlighted that globally, trade is no longer free and fair. She noted that while India is sometimes criticised for being “inward-looking” or a “tariff king,” its use of tariffs has always been defensive, aimed at protecting domestic industries from unfair competition or sudden surges of low-cost imports, rather than to weaponise trade.

Sitharaman added that the new normal in global trade involves countries imposing barriers without scrutiny, even while publicly advocating for free trade principles. “Some nations state that tariffs are not good and no one should take such measures, but suddenly new players come up with tariff barriers, and there’s no questioning. That seems to be the new normal,” she said.

Her remarks come at a time when global trade has been disrupted by high tariffs imposed by the United States and Mexico, the latter recently announcing tariffs on countries without free trade agreements. India has historically relied on defensive measures such as anti-dumping duties, countervailing duties, safeguard quotas, and quality standards to protect domestic industries from unfair competition.