Global trade getting weaponised through tariffs: Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Wednesday, December 17, 2025, said global trade is increasingly “weaponized” through tariffs and other measures and India needs to carefully negotiate its way forward. He said the overall strength of the economy would give the country an added advantage.

“Trade is being weaponized through tariffs and many other measures, and India will have to carefully negotiate its way through this and not just be careful about tariffs, but I think the strength of our economy in general will give us this additional advantage,” Ms. Sitharaman said. Times NetworkIndia Economic Meeting 2025. He said it was now “very clear” that trade globally was not free and fair.

“India can be taught a lesson by saying that you (India) are too inward-looking, you are the tariff king, etc. But tariffs have been weaponized,” he said, adding that India’s intention was never to weaponize tariffs.

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He said India was merely protecting its domestic industries against flooding from a “predator”.

However, the Minister said that the weaponization of trade today leaves no room for criticism, adding that some countries have stated that tariffs are not good and that no one should take these measures, but “suddenly new people appear and say that we will introduce tariff barriers and there will be no questioning. So this seems to be the new normal.”

These statements are important because global trade is negatively affected by the high customs duties imposed by the USA. Mexico also recently announced that it will impose high customs duties on countries that do not have Free Trade Agreements (FTAs).