US Treasury Secretary Scott Bessent has openly criticised Europe for signing a major trade agreement with India, saying the move shows the continent has chosen business interests over its repeated expressions of support for the people of Ukraine. Speaking to CNBC on Wednesday, Bessent said Europe’s decision left him disappointed, especially as the war in Ukraine continues. “They should do what’s best for themselves, but I will tell you, I found, I find the Europeans very disappointing,” he said.
Why Europe didn’t back US tariffs on India
Bessent’s remarks came just a day after the European Union finalised a long-pending trade pact with India. The agreement is aimed at boosting trade between the two sides and cutting Europe’s dependence on the United States at a time when global trade tensions are rising.
As part of the deal, tariffs on 96.6 per cent of traded goods by value will be either eliminated or reduced. European officials expect the agreement could double EU exports to India by 2032 and help companies across the bloc save around 4 billion euros in duties.
But Bessent argued the deal also explains why Europe refused to back Washington’s decision last year to impose higher tariffs on India. Bessent said European countries have been buying refined fuel products made in India using sanctioned Russian oil supplies. According to Bessent, Europe was unwilling to support Washington’s tougher stance because it was negotiating its own trade agreement with India at the same time.
“The Europeans were unwilling to join us, and it turns out, because they wanted to do this trade deal,” he said. “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 said, speaking to CNBC.
Accusations of indirectly funding the war
The US Treasury Secretary also accused European countries of indirectly funding Russia’s war effort through their energy purchases. He said Russian crude oil is sent to India, where it is refined, and European countries then buy the refined fuel products.
“The Russian oil goes into India, the refined products come out, and the Europeans buy the refined products,” Bessent said. “They are financing the war against themselves.”
Bessent said he had raised similar concerns even before the trade agreement was formally concluded. In an earlier interview with ABC News, he pointed out that the United States had imposed 25 percent tariffs on India because of its purchases of Russian oil, despite this, Europe moved ahead with its trade talks.
“We have put 25% tariffs on India for buying Russian oil. Guess what happened last week? The Europeans signed a trade deal with India,” he said. He repeated his argument once again, saying, “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.”
Bessent’s remarks come at a time of growing strain between the United States and Europe. Tensions had already risen after President Donald Trump threatened to raise tariffs on imports from certain European countries over their opposition to his efforts related to Greenland.
Although that tariff threat was later dropped, it left many European leaders unsettled and uncertain about the future of transatlantic trade ties.
Bessent also claimed the Trump administration had done more than Europe to pressure Moscow and bring the conflict closer to an end. “Trump has worked to negotiate a settlement on the Russia-Ukraine conflict,” he said. He added that the United States had made “much bigger sacrifices” than its European partners in the effort to resolve the war.