The United States has publicly criticised the European Union’s imminent trade deal with India, framing it as a diplomatic setback for Washington amid ongoing geopolitical and trade disputes.
In an interview with ABC News, US Treasury Secretary Scott Bessent took aim at the EU’s move to finalise a historic free trade agreement with India, a pact New Delhi and Brussels are poised to officially unveil at the 16th India-EU Summit this week.
‘Sacrifices’ and tariffs
Bessent, a close ally of President Donald Trump, argued that the US had made “much bigger sacrifices” than Europe in efforts to end the Russia-Ukraine conflict, pointing to Washington’s tough tariff stance on New Delhi as evidence.
“We have put 25% tariffs on India for buying Russian oil. Guess what happened last week? The Europeans signed a trade deal with India,” he said.
Bessent’s comments reflect deepening tensions within the Western bloc over how to balance geopolitical strategy with economic interests. The Trump administration has slapped India with punitive tariffs—including a 25% levy over its continued purchases of Russian crude—on top of other trade duties, bringing total levies on some Indian exports to as high as 50% in recent years.
U.S. Treasury Secretary Scott Bessent:
The US has made much bigger sacrifices than the Europeans have.
We have put 25% tariffs on India for buying Russian oil. Guess what happened last week? The Europeans signed a trade deal with India.
The Russian oil goes into India, the… pic.twitter.com/bzwchWKDuP
— Clash Report (@clashreport) January 26, 2026
‘Financing war against themselves’
The Treasury chief went a step further by accusing European countries of indirectly “financing the war” in Ukraine through their energy purchases. “The Russian oil goes into India, the refined products come out, and the Europeans buy the refined products. They are financing the war against themselves,” Bessent remarked, reiterating his critique of Brussels’ policy choices.
Meanwhile, India and the European Union are on the verge of formally announcing the conclusion of negotiations on a long-awaited free trade agreement, described by leaders on both sides as the “mother of all deals.”
The pact, years in the making, is expected to significantly boost trade between India’s fast-growing economy and the EU’s 27-nation bloc, home to roughly 2 billion consumers and accounting for about a quarter of global GDP.
Commerce Secretary Rajesh Agrawal said the FTA will be unveiled at this week’s summit in New Delhi, where European Commission President Ursula von der Leyen and European Council President Antonio Costa will join Prime Minister Narendra Modi.
