Highlights:
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Scott Bessent said the EU was “very disappointing” over its position on Russian oil
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The US imposed tariffs on India over Russian oil purchases; the EU declined to follow
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US officials argue the India-EU trade deal favors New Delhi
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The agreement creates a market of nearly two billion people
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Trade tensions add to already strained US-EU relations
The United States has expressed strong dissatisfaction with the European Union following the signing of a wide-ranging free trade agreement between India and the EU. US officials argue that the deal, combined with Europe’s refusal to support US tariffs over India’s Russian oil imports, undermines Western unity on Ukraine and exposes growing divisions in global trade policy.
Speaking to CNBC’s Squawk on the Street, US Treasury Secretary Scott Bessent said he found the European position “very disappointing,” particularly given the EU’s role in supporting Ukraine during the ongoing Russia-Ukraine war. His comments came in response to questions about the scale of the India-EU free trade agreement and whether it weakens US influence as trade flows shift away from American markets.
Bessent framed the issue as one of priorities, suggesting that Europe has chosen commercial interests over geopolitical consistency. His remarks marked one of the strongest public rebukes from Washington since the India-EU agreement was finalized.
Scott Bessent on EU trade priorities and Russian oil
Scott Bessent directly criticized the EU for refusing to join Washington in imposing tariffs on India in response to its continued purchases of Russian oil. The US introduced a 25 percent tariff on Indian goods over the issue, arguing that India’s energy trade with Moscow undermines sanctions aimed at limiting Russia’s war funding.
According to Bessent, Europe declined to support the US move while later importing refined products derived from the same Russian oil. “India started buying sanctioned Russian oil, and guess who was buying the refined products? The Europeans,” Bessent said. He added that Europe was effectively “funding the war against themselves.”
Bessent suggested that Europe’s reluctance to align with Washington was linked to its desire to complete the trade agreement with India. “Every time you hear a European talk about the importance of the Ukrainian people, remember that they put trade ahead of the Ukrainian people,” he said.
Scott Bessent addresses Europe’s energy needs
While acknowledging Europe’s need for affordable energy, Scott Bessent argued that the EU’s position revealed a double standard. He noted that the United States could also reduce energy costs if it were willing to buy sanctioned Russian oil, a step Washington has chosen not to take. “At a price, they want cheap energy,” he remarked, underscoring what he described as a contradiction between Europe’s public stance on Ukraine and its energy policies.
Bessent’s comments reflected broader concerns within the Trump administration about Europe’s approach to sanctions enforcement and its willingness to balance economic needs with strategic commitments.
Scott Bessent comments follow broader US criticism
Scott Bessent’s remarks came a day after similar criticism from another senior US official. On Tuesday, US Trade Representative Jamieson Greer said the India-EU agreement appeared to favor India, raising questions about its long-term impact on US and European industries.
“I’ve looked at some of the details so far, and frankly, I think India comes out on top,” Greer said in an interview with Fox Business. He pointed to expanded market access for Indian goods and potential mobility provisions that could allow increased movement of Indian workers into Europe.
Greer argued that the EU is reinforcing globalization at a time when the United States is attempting to rebalance its economy by emphasizing domestic production. He said Europe, which remains heavily dependent on trade with the US, is seeking alternative markets as Washington tightens access to its own economy.
Scott Bessent and the scale of the India-EU agreement
The India-EU free trade agreement is one of the largest in recent years, creating a combined market of nearly two billion people and accounting for close to one-quarter of global GDP. Under the deal, tariffs will be reduced on 99 percent of Indian exports to the EU and more than 97 percent of EU exports to India.
Indian sectors expected to benefit include textiles, apparel, leather goods, footwear, handicrafts, and marine products. On the European side, industries such as wine, automobiles, chemicals, and pharmaceuticals are set to gain expanded access to the Indian market.
Beyond trade, the two sides also signed agreements covering security cooperation, defense collaboration, and the mobility of Indian talent. These elements highlight a broader strategic partnership between India and the EU at a time when US-EU relations are under strain.
Scott Bessent and growing US-EU trade tensions
Scott Bessent’s criticism underscores deeper tensions between Washington and Brussels over trade, energy, and geopolitical alignment. While both sides continue to emphasize shared values and cooperation on Ukraine, the disagreement over India, Russian oil, and tariff policy points to diverging economic strategies.
As the US reassesses its role in global trade and Europe pursues new partnerships, the India-EU agreement has become a focal point for broader debates about globalization, sanctions enforcement, and the balance between economic interests and foreign policy commitments.
