US Treasury Secretary Sparks Controversy Over EU-India Trade Deal, Accusing Europeans of Financing War Against Themselves
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US Treasury Secretary Scott Bessent has sparked controversy by accusing the European Union of financing a war 'against themselves' through their trade deal with India. The EU and India finalized their Free Trade Agreement last week, which has not yet been signed but is set to boost economic ties between the two regions. Bessent claims that European countries are financing the war in Ukraine by purchasing refined Russian oil products from India. '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. The US has imposed 50% tariffs on India, including 25% over the issue of Russian oil, which Bessent believes is a direct result of India's trade ties with Russia. He also claimed that the US has made 'much bigger sacrifices' than the Europeans in the Russia-Ukraine conflict. The EU-India trade deal is set to be formally announced on January 27, and is aimed at boosting economic ties between the two regions at a time of disruption due to US tariffs. The talks started way back in 2007. Meanwhile, Canada is also realigning its trade ties with India due to US tariffs, and is working towards doubling its non-US exports within ten years. Ottawa is seeking to shield its sovereignty and avoid being treated as a '51st state'. The diplomatic thaw between Canada and India follows a period of diplomatic frost under Justin Trudeau's administration. Analysts say that India represents a stable democratic partner and a strategic counterweight to US dominance in the Indo-Pacific. The US-EU tensions over the trade deal come as the US and India share a historic bond as the world's oldest and largest democracies. President Donald Trump has worked to negotiate a settlement on the Russia-Ukraine conflict, but his administration's policies have led to increased tensions with both the EU and Canada.
