US Treasury Secretary Scott Bessent slams India-EU trade deal, says Europe prioritised trade over Ukrainian people

India and the EU signed the agreement on Tuesday, with officials describing it as one of the most comprehensive trade pacts concluded by New Delhi.

US Treasury Secretary Scott Bessent strongly opposed Europe’s decision to conclude a significant trade agreement with India, arguing that the move showed the continent is prioritising commercial priorities above its stated concern for the Ukrainian people. In an interview with CNBC this week, Bessent said that he was profoundly disappointed with the European nations for their recent decision to sign this free trade agreement with India and accused them of, “hypocritically supporting Ukraine on the one hand while, at the same time, providing indirect financial support to Russia for its efforts to continue its war against Ukraine.”

Why is upset over the India-EU trade deal?

“They should do what’s best for themselves, but I will tell you, I found, I find the Europeans very disappointing,” he said. He made his comments a day after the EU concluded a long-awaited trade agreement with India aimed at increasing bilateral trade and reducing Europe’s dependence on the United States.

Why is the US criticizing Europe?

As part of this arrangement, tariffs will be removed or decreased on approximately 96.6% of items traded in terms of value, which may result in a potential doubling of EU exports to India by 2032 and provide a benefit of approximately 4 billion euros to European corporations in terms of duties. According to Bessent, the agreement also explains why the EU has not supported the US in its move to raise tariffs on Indian goods last year.

How does Bessent view the India-EU deal?

He stated, “The Europeans were unwilling to join us, and it turns out, because they wanted to do this trade deal.” “So 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 also charged that European nations are indirectly financing Russia’s war through their purchase of refined fuels that are ultimately produced from crude oil from Russia. “The Russian oil goes into India, the refined products come out, and the Europeans buy the refined products,” Bessent said.

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What is the EU-India FTA?

India and the EU signed the agreement on Tuesday, with officials describing it as one of the most comprehensive trade pacts concluded by New Delhi, combining market access with built-in safeguards against future regulatory shocks.

Under the agreement, India will secure preferential market access on 96.8% of EU tariff lines, covering 99.5% of India’s exports to the bloc. As much as 90.7% of Indian exports by value are set to become duty-free immediately upon the agreement’s entry into force, marking one of the deepest tariff liberalisation commitments secured by New Delhi in any trade pact.

The agreement connects two major global economies, India and the EU’s 27-country bloc. This will greatly benefit Indian industries, including textiles, precious stones, jewellery, and engineering. Trade relations with India and the US remain strained today. The Trump administration has imposed tariffs of up to 50% on India, including a 25% tariff on any purchase of Russian Oil by India, and these comments from Bessent suggest that the US sees the strengthening of economic relations between India and Europe as a threat to its global strategy and sanctions regime.