What Nirmala Sitharaman said on Trump tariffs, escalating trade wars, new normal of global trade
Nirmala Sitharaman on Trump Tariffs: The turmoil witnessed in the global economy after US President Donald Trump imposed tariffs on various countries in April has exposed the weaknesses of the international trade system.
She said a sharp decline in stock markets, escalating trade wars between countries, and strained bilateral relations have been direct consequences of this policy. Its negative effects have also been felt within the US, where rising inflation has impacted ordinary citizens, a fact acknowledged by several American lawmakers.
Global trade is currently being used as a weapon
Against this backdrop, Union Finance Minister Nirmala Sitharaman, during a conclave hosted by a TV channel, stated unequivocally that global trade is currently being used as a weapon through tariffs and other measures, which is a cause for concern. She said it is now abundantly clear that global trade is neither completely free nor fair, and therefore, India must proceed very cautiously and strategically.
India has never used tariffs as a weapon
Sitharaman emphasized that merely negotiating on tariffs is not sufficient. She said the overall economic strength will give India an added advantage on the global stage. She also stated that India is often accused of being protectionist or a "tariff king," but the truth is that India has never used tariffs as a weapon. She said India has only imposed tariffs to protect its domestic industries, preventing any foreign country or company from flooding the market with cheap or excessive goods and harming local industries.
New normal of global trade
The Finance Minister also questioned why some countries are openly announcing high tariffs without facing significant opposition, whereas such actions were criticized in the past. She termed this the "new normal" of global trade. Her statements are considered significant because the tariff policies of several countries, including the US, are impacting global trade. Mexico's entry into the tariff war after the US
Recently, countries like Mexico have also announced the imposition of high tariffs on nations with which they do not have free trade agreements. In such a situation, India's cautious and balanced trade policy is considered extremely important for its economic stability and long-term interests.