India EU Trade Deal: US Treasury Secretary Scott Bessent has launched a scathing attack on Europe over the India-European Union trade agreement.

Scott Besant

US Treasury Secretary Scott Bessent on Wednesday launched a scathing attack on Europe over the recent trade agreement between India and the European Union (EU), saying the deal clearly shows the EU prioritized its trade interests over supporting Ukraine.

Speaking to CNBC, Scott Bessant said he was disappointed with the agreement reached on Tuesday between India and the EU after years of negotiations. European Commission President Ursula von der Leyen has described the agreement as the "mother of all deals." Bessant responded, "They should do what they think is right. But frankly, I found Europe's approach extremely disappointing."

EU distances itself from US tariffs on India

Bessant alleged that European countries are buying refined products from India made from Russian oil, despite their reluctance to support the US's tough trade policy on India. He said that the US imposed an additional 25 percent tariff on Indian goods last year, but the EU did not support this move because it wanted to establish its own trade agreement with India. "Europe was unwilling to join us, and now it's clear that the reason was this trade deal," Bessant said.

Scott Bessant said this European policy undermines its statements regarding Ukraine. He said, "Every time you hear a European leader talk about the importance of the Ukrainian people, remember that they put trade above Ukraine."

What is the purpose of the 'Mother of All Deals'?

The India-EU trade agreement aims to increase trade between the two sides and reduce Europe's dependence on the United States. According to Brussels, the deal will eliminate or reduce tariffs on approximately 97 percent of traded goods. This could double EU exports to India by 2032 and save European companies approximately 4 billion euros in duty.

US-Europe trade relations are strained.

Bessant's comments come as trade relations between the US and Europe remain strained during President Donald Trump's second term. US officials are upset that the EU has yet to implement tariff reduction promises made under a framework agreement signed with Washington in July.

US tariff pressure on other countries as well

These tensions escalated further when the US increased tariffs on other trading partners, including South Korea. The US claims these countries have been slow to implement bilateral trade agreements. Bessant described the tariffs as a form of pressure, saying such measures help move things forward.

Europe also targeted over energy trade

Speaking to ABC News on Sunday, Bessant said that European countries are undermining their own security policies through energy trade. "We imposed a 25 percent tariff on India for buying Russian oil," he said. "But what happened last week? Europe signed a trade deal with India."

Up to 50% tariff on India, signs of relief too

The Trump administration has imposed tariffs of up to 50 percent on Indian goods, 25 percent of which are directly related to India's purchase of Russian oil. These tariffs were further increased in August, further straining US-India trade relations. Bessant has recently hinted that tariff relief may be available in the future. Speaking to Politico on the sidelines of the World Economic Forum, he said that Indian refineries have sharply declined in their purchases of Russian crude oil. He said, "The 25 percent tariffs are still in place, but I think there's a way to remove them."