Global Trade Clash: US Hits India with Tariffs as EU Moves Closer to Deal with New Delhi

Washington says Europe is indirectly financing Russia’s war by purchasing Indian-refined oil made from Russian crude amid rising trade tensions.

Washington, DC. Even as New Delhi and Brussels get ready to finalize a major free trade deal, US Treasury Secretary Scott Bessent attacked European nations on Tuesday, accusing them of indirectly funding Russia's war in Ukraine through energy commerce.

Bessent defended the Trump administration's decision to apply high duties on Indian imports connected to Russian oil sales in an interview with ABC News. He stated that European countries' ongoing purchases of petroleum products made in India from Russian crude undermine both the US and their own security posture.

They have imposed tariffs of 25 percent on India's purchase of Russian oil. Can you guess what took place last week? A commercial agreement was signed by Europeans and India, according to Bessent. To be clear once more, Russian oil enters India, refined goods are produced, and Europeans purchase these goods. He continued, "They are funding the conflict against themselves."

At an advanced summit on Tuesday, India and the European Union are scheduled to formally proclaim the close of discussions on a comprehensive free trade agreement. EU officials have referred to the agreement, which has been in the works for almost 20 years, as a historic agreement that may greatly strengthen economic relations between the two areas.

Bessent presented his complaint as a component of Washington's larger concern with what it perceives to be unequal burden-sharing among allies. Punitive tariffs of as much as fifty percent have been levied on Indian imports by the Trump administration, including a tax of 25 percent that is directly related to India's purchases of Russian petroleum.

When questioned about the tensions, Bessent reaffirmed that "we will eventually end" the war under Trump's leadership and said that the US has borne a disproportionate amount of the political and economic costs associated with efforts to end the Russia-Ukraine conflict.

Although sensitive industries like agriculture and dairy remain unresolved, the India-EU agreement is anticipated to contain discounts on European goods and preferential access for a variety of Indian exports.