Tariffs and sanctions are now a reality in global trade, says S Jaishankar

The External Affairs Minister emphasised the growing weaponisation of economic activities, adding that financial flows, energy supplies, and technology are now being used in global competition

Tariffs and sanctions are now a common tool used by countries to protect their economic interests, said External Affairs Minister S Jaishankar speaking at the Raisina Dialogue in New Delhi today. International relations, he said, have changed, and the lines that used to divide different sectors have ‘eroded’. 

 

“Tariffs, sanctions, I think, whether we would like it or not, they are a reality, countries use them," Jaishankar said during a panel discussion titled ‘Commissars and Capitalists: Politics, Business and New World Order’.

 

He noted that over the past decade, the world has witnessed an increase in the “weaponisation” of different economic activities. “It could be financial flows, it could be energy supplies, it could be technology,” he explained.

 

Background of Jaishankar’s remarks

 

Jaishankar’s remarks come at a time when the US has announced new tariffs on goods from several countries, including India. He emphasised the importance of economic competition, stating, “This is a reality of the world. You fight for your business, because you are fighting for your employment, you are fighting for your comprehensive national power, of which business makes a very important contribution.”

 

Highlighting the shift in global diplomacy, he said, “Today, the lines dividing different domains have eroded. If you see in international relations, I think it’s a less restrained culture today than it was a decade ago.”

 

White House’s comments on tariff on US

 

Meanwhile, on March 13, White House Press Secretary Karoline Leavitt commented on the tariffs imposed by other nations on the US, specifically mentioning India’s tariffs on American alcohol and agricultural products. 

 

“I have a handy chart here that shows not just Canada but the rate of tariffs across the board. If you look at Canada, since you brought it up, American cheese and butter have a nearly 300 per cent tariff," she said during a press briefing. She added that US President Donald Trump believes in “reciprocity” and aims for “fair and balanced trade practices.”

 

A tariff war, started by the US

 

The US has recently imposed a series of tariffs on multiple countries, significantly impacting global trade. On March 12, 2025, the US increased tariffs on steel and aluminium imports to 25 per cent, affecting major suppliers like Canada, Brazil, Mexico, and South Korea. 

 

The decision aimed to strengthen domestic industries but led to strong reactions from affected nations, with the European Union and Canada announcing countermeasures. 

 

Additionally, the US adjusted its ‘de minimis’ exemption policy, briefly suspending it for imports from China, Mexico, and Canada to curb e-commerce loopholes before reinstating it to prevent customs disruptions. President Donald Trump also directed his administration to explore reciprocal tariffs, aiming to match foreign tariff rates within 180 days.

 

[With inputs from PTI]