The United States has expressed strong dissatisfaction over the European Union’s decision to finalise a major trade agreement with India, even as trade negotiations between New Delhi and Washington remain unresolved.
US Treasury Secretary Scott Bessent criticised the EU, arguing that the United States has made significantly greater sacrifices to pressure Russia over its war with Ukraine.
Speaking in an interview with ABC News, Bessent said the US has taken tougher economic steps than its European allies, particularly by imposing steep tariffs on India for continuing to purchase Russian oil.
“We have put 25% tariffs on India for buying Russian oil. Guess what happened last week? The Europeans signed a trade deal with India,” Bessent remarked, underscoring Washington’s frustration with the timing of the agreement.
Allegations Over Russian Oil Trade
Bessent, a vocal supporter of President Donald Trump’s tariff policies, reiterated claims that India’s oil trade indirectly benefits Russia. According to him, Russian crude is refined in India and then sold to European markets.
“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,” he said.
These comments echo Bessent’s earlier remarks from August 2025, when he accused India of reselling Russian oil at a profit, just days before an additional 25% tariff took effect.
Shift From Earlier Signals
Notably, Bessent’s latest stance contrasts with his previous comments suggesting a possible easing of tariffs. In an earlier interview with Politico, he had indicated that Indian refineries were reducing Russian oil purchases and hinted at a potential rollback of trade penalties.
“The tariffs are still on. I would imagine there is a path to take them off,” Bessent had said at the time, fueling speculation of improved trade ties. However, no official response has been issued by Indian authorities regarding these claims.
India-EU Trade Deal Set for Announcement
Meanwhile, India and the European Union are set to formally announce their long-anticipated Free Trade Agreement (FTA) at the 16th India-EU Summit. Commerce Secretary Rajesh Agrawal confirmed on Monday that negotiations have concluded, calling the agreement a significant milestone.
The summit will include talks between Prime Minister Narendra Modi, European Commission President Ursula von der Leyen, and European Council President Antonio Costa. The leaders were also seen together during India’s Republic Day celebrations on January 26 at Kartavya Path in New Delhi.
The FTA is expected to substantially boost Indian exports, particularly in sectors such as textiles and jewellery, which have been adversely affected by the Trump administration’s 50% tariffs. These tariffs were imposed in two phases in 2025, with the latter half introduced as a penalty for India’s continued oil trade with Russia.
