"We've seen a greater weaponization of economic activity": Jaishankar on trade and global power shifts

External Affairs Minister Dr. S. Jaishankar has said that whether we like it or not, tariffs, sanctions, and export controls are a reality. The EAM made this statement while participating in a conversation at the Raisina Dialogue in Delhi.

When asked about trade and global power shifts, Jaishankar said, "On your point about tariffs, sanctions, and export controls — whether we like it or not, they are a reality. Countries use them."

The EAM added, "In fact, if you look at the last decade, we've seen a much greater weaponization of pretty much any kind of capability or economic activity. It could be financial flows, energy supplies, or technology — this is the reality of the world."

He added that "he takes the world as it is" and said, "we have to navigate our way through that and figure out how best we can do for our own country."

The EAM also underlined the significance of governments fighting for the rights of their businesses. He said, "At the end of the day, for a government — for a commissar of the government — you fight for your business because you're fighting for employment and for the comprehensive national power, of which business makes a very important contribution."

Jaishankar said that the lines between trade, technology, and diplomacy have eroded, creating a more complex and competitive global environment. He said that countries must now treat economic strength as a key element of national security and strategic influence. He added that India must strengthen its internal capabilities and secure its supply chains to remain competitive in the evolving global landscape.

Trump's Tariff Tirade

Dr. Jaishankar's statement comes at a time when the world is in a trade turmoil, following the tariff actions unleashed by US President Donald Trump. While the Trump administration has already imposed tariffs on products from China, Canada and Mexico, it is also planning to enforce a reciprocal tariff regime from April 2.

While talking about the reciprocal tariffs, Trump has often singled out India, claiming that India has "tremendously high tariffs".