US slams Europe for ‘mother of all deals’ with India, says it undermines Ukraine war efforts

US Treasury Secretary Scott Bessent on Wednesday rebuked European countries over their recently signed 'mother of all deals' with India, saying Europe prioritised trade over support for Ukraine amid the ongoing war.

Asked whether the India-EU trade agreement threatened US interests, Bessent said nations should “do what is best for themselves” but added he was “very disappointed” with Europe’s actions.

“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,” he said in an interview with foregin media outlet. “The Europeans are on the front line of the Ukraine-Russia war. Every time you hear a European talk about the importance of the Ukrainian people remember that they put trade ahead of the Ukrainian people.”

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After nearly two decades of on-and-off negotiations, India and the EU formally announced a free trade agreement on January 27, which is set to create a combined market of 2 billion people, representing approximately 25 per cent of global GDP.

Also Read: ‘India going to have a heyday’: US says New Delhi ‘comes out on top’ in India–EU FTA

Europe accused of funding the war

Bessent pointed out that while India had begun buying sanctioned Russian oil, European countries later purchased refined products, effectively funding the conflict. He added that European nations had deliberately refrained from joining US efforts to penalise India with tariffs because they were focused on securing the trade agreement.

“Because they wanted to do this trade deal, the Europeaaxns were unwilling to join us,” Bessent said.

India gains from EU trade deal

Earlier, US Trade Representative Jamieson Greer acknowledged that India stood to gain significantly from the EU deal. “I think India comes out on top on this, frankly. They get more market access in Europe,” Greer said, noting that the agreement may also facilitate labour mobility for Indian workers.

Greer also criticised Europe’s approach, saying the EU was “doubling down on globalisation” while the US sought to address the downsides of open trade policies. He added that Europe’s engagement with India was partly driven by changing US trade policies, including higher costs for market access under previous US administrations.

“The EU is turning to India to find a place. They can’t keep sending all their stuff to the United States,” Greer said.

Also Read: India–US Trade Deal| BTA could be ‘finalised any day now’ as negotiations edge closer: Report

India-EU strategic agenda continues

Separately, India and the EU have adopted the “Towards 2030: India–EU Joint Comprehensive Strategic Agenda” to strengthen bilateral cooperation across technology, trade, security, and climate initiatives. The leaders emphasised completing ongoing negotiations on an Investment Protection Agreement and an Agreement on Geographical Indications, while deepening collaboration on clean energy, digital technology, and education.

Both sides reaffirmed their commitment to the India-EU Trade and Technology Council, innovation hubs, and startup partnerships, as well as to improving connectivity, sustainable supply chains, and people-to-people ties. The two sides plan to hold the next TTC ministerial meeting in Brussels in 2026, and will continue working on trilateral cooperation projects in energy, climate resilience, and digitalisation.