Global trade is increasingly being weaponised - not just through tariffs, but through several other measures as well, Finance Minister Nirmala Sitharaman warned on Wednesday. "Trade is getting weaponised through tariffs, through many other measures, and India will have to negotiate its way carefully through this," she said while speaking at the Times Network India Economic Conclave 2025. "Beyond trade negotiations, it is the strength of our economy that will give us a decisive advantage."
 

Her remarks come at a time when India faces steep tariff and non-tariff barriers from multiple trade partners, including the United States, Mexico and the European Union. 

In August, the US slapped a 50% tariff on goods imports from India. This included a punitive 25% tariff in response to New Delhi's continued oil trade with Russia. The finance minister said, "India has never weaponised tariff and has focused on its domestic strengths, bolstering it through structural reforms."

Mexico, too, has now imposed duties of up to 50% on imports from non-preferential trade partners, including India. The tariffs, which take effect from January next year, are expected to hit India's annual $5.75 billion exports to the country, affecting key segments like electronics, apparel, chemicals, and engineering goods.

Referring to advice from some quarters that India should pursue freer trade or avoid being inward-looking, Sitharaman said, "While it is good to hear people give their advice, India, and countries like India who have aspirations, will have to mark their own goal post."

On domestic economic priorities, she said, "The services sector is contributing to the GDP, we have to now spend time to see how the manufacturing sector picks up, and the government will have to spend money on research and development for it."

https://www.businesstoday.in/latest/economy/story/not-just-through-tariffs-sitharaman-says-trade-is-being-weaponised-india-will-have-to-negotiate-carefully-506998-2025-12-17