‘Financing War Against Itself’: US Slams Europe Over India-EU Trade Deal

The US has criticised Europe’s energy policy, saying its purchase of India-refined Russian oil indirectly funds Moscow’s war, even as Washington imposes tariffs on related Indian imports.

The United States has sharply criticised Europe’s approach to energy and trade as India and the European Union finalise a landmark Free Trade Agreement (FTA), with US officials warning that European nations are “financing the war against themselves.”

US Treasury Secretary Scott Bessent made the remarks in interviews with major media outlets, arguing that Europe’s purchases of refined oil products originating from Russian crude — imported into India, refined there, and then bought by European countries — indirectly support Russia’s war efforts in Ukraine, even as the US has imposed punitive tariffs on India for its Russian oil imports.

Bessent highlighted the 25% tariff imposed by the United States on Indian imports tied to crude oil purchases from Russia, saying the conflict between trade policy and energy flows shows a contradiction in Europe’s strategic stance. He described European energy buying patterns as counterproductive, asserting that while Washington has taken stronger economic burdens to counter Russia, European policies unintentionally aid Moscow.

The comments coincide with diplomatic efforts in New Delhi and Brussels as leaders prepare to formally announce the conclusion of the India-EU FTA — often dubbed the “mother of all trade deals” — intended to boost trade and strategic ties after nearly two decades of negotiation.

Bessent also framed the debate within broader geopolitical tensions, remarking that the United States has absorbed a disproportionate share of costs in supporting Ukraine, while urging closer alignment between Western partners. He reiterated that under the Trump administration’s leadership, the US aims to steer a resolution to the Russia-Ukraine conflict.

The US stance highlights a growing transatlantic clash over trade, energy policy, and geopolitical strategy as Washington, Brussels and New Delhi navigate shifting global economic and security dynamics.