Following the India–EU free trade agreement, the United States described Europe as “very disappointing,” saying EU nations refused to join Washington in imposing tariffs on New Delhi over its purchases of Russian oil because of the trade deal.
“They should do what’s best for themselves, but I find the Europeans very disappointing, especially since they are on the front line of the Ukraine-Russia war,” US Treasury Secretary Scott Bessent said in an interview with CNBC’s Squawk on the Street on Wednesday. “Every time you hear a European talk about the importance of the Ukrainian people, remember that they put trade ahead of the Ukrainian people.”
Bessent alleged that while India increased purchases of discounted Russian crude, Europe ended up buying refined products made from that oil. “The Europeans have been funding the war against themselves, something you couldn’t have made up,” he said.
The US had imposed a 25 per cent tariff on India over its Russian oil imports, but Europe declined to follow suit, Bessent said. He argued that EU’s position was influenced by its pursuit of a trade deal with New Delhi. “They want cheap energy,” he said, adding that the US could also access cheaper energy if it chose to buy sanctioned Russian oil.
Bessent's comments were the second remarks in as many days by the Trump administration on the trade deal between India and the EU, dubbed as the "mother of all deals.
On Tuesday, US Trade Representative Jamieson Greer said India had emerged as the bigger winner from the pact. “India comes out on top. They get more market access into Europe,” Greer told Fox Business, pointing to India’s low-cost labour advantage and possible provisions on mobility for Indian workers.
Greer said the EU was “doubling down on globalisation” at a time when the US is trying to correct what it sees as its downsides.
He added that Europe, heavily dependent on trade, is seeking alternative markets as the US prioritises domestic production and charges higher costs for access to its market.
India and the European Union finalised the sweeping FTA in New Delhi earlier this week, as Prime Minister Narendra Modi hosted European Commission President Ursula von der Leyen and European Council President Antonio Costa amid strained transatlantic ties.
The agreement creates a combined market of nearly two billion people and covers close to a quarter of global GDP. It will eliminate tariffs on 99 per cent of Indian exports to the EU and reduce duties on over 97 per cent of EU exports to India.
Indian sectors such as textiles, apparel, leather, footwear, handicrafts and marine products are expected to gain, while European exporters stand to benefit in automobiles, wine, chemicals and pharmaceuticals. The two sides also signed agreements on defence and security cooperation and on mobility for Indian professionals in Europe.
(With inputs from PTI)