'Very disappointed': US treasury chief blasts Europe over India-EU deal
What's the story
United States Treasury Secretary Scott Bessent has slammed Europe's recent free trade agreement with India. He accused European leaders of putting economic interests before their geopolitical and energy security concerns, especially in the context of the ongoing Ukraine war. Bessent said, "Europe and India signing this massive trade deal--does that threaten America? Again, they should do what's best for themselves." "But I find the Europeans very disappointing because they are on the front line of the Ukraine-Russia war."
Deal details
EU-India trade deal sparks controversy
The European Union (EU) recently finalized a major trade agreement with India, aimed at boosting bilateral trade and reducing dependence on the United States. The deal will eliminate or reduce tariffs on 96.6% of traded goods by value, potentially doubling EU exports to India by 2032. However, Bessent argues that this move shows Europe prioritizing commerce over pressure on Russia regarding Ukraine.
Financing allegations
Bessent accuses Europe of indirectly financing Russia's war
Bessent also accused Europe of indirectly financing Russia's war by buying refined fuel products linked to Russian crude oil. He said, "The Russian oil goes into India, the refined products come out, and the Europeans buy the refined products." This criticism comes after he had earlier slammed Europe's refusal to match Washington's decision to impose higher tariffs on India over its purchase of Russian oil last year.
Tariff imposition
US imposes tariffs on India for Russian oil purchases
Bessent pointed out that the United States had imposed a 25% tariff on India for buying Russian oil, while Europe moved ahead with its trade pact. "The Europeans were unwilling to join us, and it turns out because they wanted to do this trade deal," Bessent said. "Every time you hear a European talk about the importance of the Ukrainian people, remember that they put trade ahead of the Ukrainian people. Trade, European trade, more important than ending the war."
Energy dependence
Bessent acknowledges Europe's energy dependence
Bessent acknowledged that Europe's heavy dependence on energy imports has influenced its decisions. However, he framed the issue as a moral and strategic trade-off. "They need energy, I guess, which is part of their issue. At a price they want cheap energy but we could have cheaper energy too if we were willing to buy sanctioned Russian oil," he said in an interview with CNBC.