India’s Finance Minister Nirmala Sitharaman warned on Wednesday that global trade is increasingly being “weaponised” through tariffs and other restrictive measures, signaling a shift in how international commerce is being conducted. She made the remarks while speaking at the India Economic Conclave 2025, emphasising that traditional notions of free and fair trade are under pressure and that India must navigate the evolving landscape carefully.
Sitharaman noted that many countries are now using tariffs as tools of economic leverage rather than purely for protective purposes, creating a complex environment for exporters and policymakers alike. She stressed that while India has faced criticism for being “inward-looking” or a so-called “tariff king”, its use of tariffs has historically been aimed at safeguarding domestic industries against unfair competition, not weaponising trade policy.
The finance minister argued that this trend of weaponising trade — through tariffs and additional non-tariff barriers — has become something of a “new normal” in global commerce. She underscored that India will have to strategically negotiate trade terms and leverage the strength of its economy to protect national interests and maintain export growth amid these challenges.
Sitharaman’s comments come at a time when various trading partners have implemented higher tariffs and barriers, affecting market access for Indian goods. She highlighted that trade discussions today are not just about reducing tariffs but also about addressing a broader set of economic measures that can impact competitiveness and long-term growth for Indian exporters.
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