Washington/New Delhi: The United States has sharply criticised European nations following the signing of a free trade agreement between India and the European Union, accusing them of prioritising trade interests over their stated commitment to ending the Ukraine war.
Reacting to the India-EU FTA, US Treasury Secretary Scott Bessent said Europe had been “very disappointing” for refusing to join Washington in imposing tariffs on India over its purchases of Russian oil. Speaking to CNBC’s Squawk on the Street on Wednesday, Bessent argued that European countries, despite being directly affected by the Ukraine-Russia conflict, chose economic interests over collective pressure on Moscow.
Bessent said India began purchasing sanctioned Russian oil, while European countries continued buying refined petroleum products derived from that crude. He claimed this meant Europe was indirectly financing a war that threatens its own security. The US, he added, had imposed a 25 per cent tariff on India for buying Russian oil, but European nations declined to take similar steps, choosing instead to pursue a major trade agreement with New Delhi.
According to Bessent, Europe’s stance undermined its moral arguments in support of Ukraine. He said that while European leaders often speak about standing with the Ukrainian people, their actions showed that trade considerations took precedence. He also remarked that Europe sought cheap energy and could have accessed it in other ways, just as the US could if it were willing to buy sanctioned Russian oil.
The remarks marked the second consecutive day of criticism from the Trump administration over the India-EU trade deal, which has been described by officials as the “mother of all deals.” The agreement was formally signed in New Delhi earlier this week in the presence of Prime Minister Narendra Modi, European Commission President Ursula von der Leyen and European Council President Antonio Costa.
A day earlier, US Trade Representative Jamieson Greer said India appeared to have gained more from the agreement than Europe. In an interview with Fox Business, Greer said India secured greater access to European markets and suggested that the deal could include expanded mobility or immigration-related benefits for Indian workers.
Greer said the agreement could give India a significant economic boost due to its low-cost labour advantage, while accusing the EU of doubling down on globalisation at a time when the US is trying to recalibrate its trade policies. He added that Europe’s heavy dependence on trade meant it was seeking alternative markets as Washington focused on domestic production and imposed new conditions on access to the US market.
According to Greer, Europe’s pivot towards India reflects a broader effort to manage overproduction and reduce reliance on the American market, particularly as US trade policies become more inward-looking.
