- By Shivangi Sharma
- Mon, 26 Jan 2026 10:56 PM (IST)
- Source:JND
Treasury Secretary Scott Bessent has criticised Europe for benefiting from trade with India while the United States imposed economic sacrifices in response to the Russia-Ukraine war. “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 reporters, noting that Russian crude goes to India, and Europe then purchases refined petroleum products from the country. “They are financing the war against themselves,” he added.
India-EU ‘Mother Of All Deals’
The India-EU trade agreement, described as the “mother of all deals,” is expected to be formally announced at te India-EU summit on Tuesday. European Commission President Ursula von der Leyen said during a speech at the World Economic Forum in Davos last week: “There is still work to do. But we are on the cusp of a historic trade agreement… One that would create a market of 2 billion people, accounting for almost a quarter of global GDP.”
U.S. Treasury Secretary Scott Bessent:
— Clash Report (@clashreport) January 26, 2026
The US has made much bigger sacrifices than the Europeans have.
We have put 25% tariffs on India for buying Russian oil. Guess what happened last week? The Europeans signed a trade deal with India.
The Russian oil goes into India, the… pic.twitter.com/bzwchWKDuP
US-India Trade Deal Stalled
While EU-India negotiations conclude, legal scrubbing of the free-trade agreement (FTA) text is underway, according to India’s Commerce Secretary Rajesh Agrawal. The pact is expected to be signed this year and could take effect early next year. The US-India trade deal, however, has been blocked by President Donald Trump, Vice President JD Vance, and White House adviser Peter Navarro, according to a claim made by Republican Senator Ted Cruz during a private meeting with donors.
Sanctions Against Russian Oil
The EU had aligned with the US on sanctions targeting Russian oil, adopting its 18th package in July 2025, which bans imports of petroleum products refined from Russian crude through third countries. Bessent clarified the US position on India’s oil purchases, telling Fox News: “India started buying Russian oil after the conflict began, but President Trump put a 25 per cent tariff on them, and India has geared down and has stopped buying Russian oil.”
India has previously called the US tariff action “unfair, unjustified and unreasonable,” citing national interest and market conditions. The European Commission has since moved to tighten sanctions, covering refined oil products derived from Russian crude, with member states responsible for enforcement and penalties. Amid these tensions, wider US-India trade ties remain strained, with Trump and Navarro criticising New Delhi’s energy links to Russia and questioning why US-built AI platforms serve large overseas markets, including India.