Global Trade Is Being ‘Weaponised’, India Must Negotiate Carefully: Nirmala Sitharaman
Finance Minister Nirmala Sitharaman has warned that global trade is increasingly being “weaponised” through tariffs and restrictive measures, cautioning that India must navigate the evolving international trade environment with strategic care. Speaking at an event on Wednesday, Sitharaman said the era of free and fair trade is rapidly eroding, forcing countries like India to protect their economic interests more assertively.
Her remarks come amid rising global trade tensions, including tariff actions by the United States and Mexico that have directly impacted Indian exports.
Context: Rising Global Tariff Wars
Sitharaman’s comments follow a series of protectionist trade moves by major economies. US President Donald Trump earlier imposed a 25% tariff on Indian goods, citing trade imbalances, followed by another 25% penalty linked to India’s purchase of Russian crude oil.
More recently, Mexico announced tariff hikes of up to 50% from 2026 on imports from countries without free trade agreements, a list that includes India, China, South Korea, Thailand and Indonesia. These developments have intensified concerns over the future of multilateral trade norms.
‘Trade Is Getting Weaponised’: Sitharaman’s Warning
Addressing the gathering, Sitharaman said tariffs are no longer merely economic tools but instruments of geopolitical pressure.
“Trade is getting weaponised through tariffs and through many other measures, and India will have to negotiate its way carefully in this,” she said, adding that India’s economic strength would be its biggest advantage in such negotiations.
She stressed that the challenge goes beyond tariffs alone and requires a broader focus on strengthening domestic economic fundamentals.
India’s Position on Tariffs
Responding to criticism that India is inward-looking or overly protectionist, Sitharaman rejected the narrative that the country has weaponised tariffs.
“India can be lectured saying you are very inward-looking, you are a tariff king and so on. But tariff has been weaponised,” she said, clarifying that India’s intention has always been defensive rather than aggressive.
According to the finance minister, India has imposed safeguards only to protect its industries from unfair competition and predatory trade practices, particularly when markets are flooded with cheap imports.
‘Trade Is No Longer Free and Fair’
Sitharaman said it is now evident that the global trading system has shifted fundamentally.
“It is very clear globally that trade is no longer free and fair,” she remarked, pointing to the selective use of tariffs by major economies without facing the same scrutiny that developing countries often encounter.
She highlighted what she described as a growing double standard, where some nations openly raise trade barriers while others are criticised for doing the same.
New Normal in Global Trade
Referring to recent policy shifts, Sitharaman noted that the global acceptance of tariff barriers is becoming the norm.
“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,” she said.
The finance minister indicated that India must adapt to this reality rather than rely on outdated assumptions about open global markets.
India–Mexico Talks Underway
Following Mexico’s decision to impose steep tariffs, Sitharaman confirmed that India has already initiated discussions with Mexico to mitigate the potential impact on Indian exports.
The move signals India’s intent to resolve trade disputes through dialogue while safeguarding domestic economic interests.
Analysis: A Shifting Global Trade Order
Sitharaman’s remarks underline a broader shift in the global economic order, where trade policy is increasingly influenced by geopolitics rather than multilateral consensus. For India, this means balancing openness with protection — defending domestic industries while remaining engaged in global markets.
As traditional free-trade frameworks weaken, negotiation skills and economic resilience are emerging as key strategic assets.
Conclusion
Nirmala Sitharaman’s warning reflects India’s growing realism about the global trade environment. With tariffs becoming tools of pressure rather than regulation, India’s challenge lies in protecting its industries without isolating itself from global commerce. Careful negotiation and economic strength, she suggested, will be crucial in navigating this new landscape.
Final Thoughts from TheTrendingPeople
As global trade norms fragment, India’s approach signals a shift from idealism to pragmatism. Sitharaman’s remarks highlight the need for strategic negotiation in a world where economic tools are increasingly used as weapons — a reality India can no longer afford to ignore.