Global Economics: The Shift Towards Tariffs and Sanctions

External Affairs Minister S Jaishankar discusses the increasing trend of countries using tariffs and sanctions to protect their economic interests, highlighting the eroding lines between business and politics in global relations. He addressed the growing 'weaponization' of economic activities during the Raisina dialogue in New Delhi.

During a panel discussion at the Raisina dialogue in New Delhi, External Affairs Minister S Jaishankar emphasized the increasing global reliance on tariffs and sanctions as tools for economic protectionism. He noted the growing trend of countries leveraging various capabilities—from financial flows to technology—as economic weapons.

Jaishankar's comments came in light of recent U.S. tariffs on imported goods, including those from India. He remarked on the reality of the world economy, where nations fiercely compete for business to sustain employment and bolster national power, with businesses playing a crucial role.

Highlighting the evolving landscape of international relations, Jaishankar observed the diminishing distinction between different global domains. Acknowledging the role of tariffs in this transformation, he pointed to a less restrained international culture compared to a decade ago, echoing sentiments of U.S. officials about global trade dynamics.

(With inputs from agencies.)