US Commerce Secretary slams India-EU trade deal over Russian oil purchases
Says Europe is “financing the war against itself” by buying refined Russian oil from India, as Delhi and the EU prepare to announce the conclusion of long-pending FTA talks
US Commerce Secretary Scott Bessent lashed out at the European Union (EU) over its proposed trade deal with India, stating that Europe is financing the "war" against itself by purchasing refined Russian oil products from India.
The India-EU trade negotiations, which were concluded on Monday (January 26), will be formally announced on Tuesday (January 27) as confirmed by Commerce Secretary Rajesh Agrawal. However, contrary to Bessent’s claim, the deal is yet to be signed.
"We have put 25 per cent tariffs on India for buying Russian oil. Guess what happened last week? The Europeans signed a trade deal with India,” Bessent told ABC News onSunday.
‘Will eventually end Russia-Ukraine war’
"And just to be clear again, the Russian oil goes into India, the refined products come out, and the Europeans buy the refined products. They are financing the war against themselves,” he said, adding that under Trump's leadership, “we will eventually end” the Russia-Ukraine war.
Also Read: India, EU complete FTA negotiations, summit announcement today
The Trump administration has imposed 50 per cent tariffs on India, including 25 per cent for Delhi’s purchases of Russian oil. India and the European Union are set to announce on January 27 the conclusion of negotiations and finalisation of a free trade agreement, aimed at boosting economic ties between the two regions amid disruptions in global trade due to US tariffs. The talks started in 2007.
European Commission President Ursula von der Leyen, who is currently in India and was the Chief Guest at the 77th Republic Day celebrations in New Delhi, has termed the EU-India FTA as the “mother of all trade deals”.
What Senator Ted Cruz said
The remarks come amid fresh claims from within Trump’s own party. Republican Senator Ted Cruz has reportedly said that it is the White House, not New Delhi, that has been holding up progress on a trade agreement with India.
Also Read: From Viswaguru to labour supplier: Hidden cost of India-EU trade talks
According to leaked audio recordings cited by Axios, Cruz can be heard speaking to donors about efforts by himself and other Republicans to dissuade Donald Trump from rolling out sweeping tariffs last April.
It was during that push that Trump announced a 25 per cent tariff on Indian goods in 2025, a figure later raised to 50 per cent in August, with the administration pointing to India’s commercial links with Moscow.
Warming India-Canada ties
Meanwhile, Canada, facing its own tariff pressure from Washington, has begun repositioning India as a key economic partner. Under Prime Minister Mark Carney, Ottawa has signalled a shift in foreign policy following threats of steep US duties, including a proposed 35 per cent levy on Canadian exports.
The recalibration marks a departure from strains seen during the tenure of Justin Trudeau, when ties with India cooled over security disputes.
(With agency inputs)