Transatlantic Tensions: Europe's Trade Challenge Amid U.S. Discontent

U.S. Treasury Secretary Scott Bessent criticized Europe for prioritizing a trade agreement with India over supporting Ukraine. The deal, aiming to boost EU-India trade, has caused tensions with the U.S., as the EU did not align with U.S. tariffs on India, affecting geopolitical dynamics.

U.S. Treasury Secretary Scott Bessent expressed disappointment over Europe's recent decision to prioritize a major trade agreement with India, accusing the bloc of sidelining Ukrainian interests.

In an interview with CNBC, Bessent underscored that Europe had been importing refined products from India, derived from sanctioned Russian oil, while also electing not to align with higher U.S. tariffs on Indian goods amidst their own negotiation efforts. This development comes after the European Union finalized a long-delayed trade deal with India, aiming to bolster two-way trade and decrease reliance on the United States amid escalating global trade tensions.

The agreement is projected to double EU exports to India by 2032, reduce tariffs on 96.6% of goods by value, and save European companies around 4 billion euros in duties. Bessent suggested that while countries should act in their own interests, the decision reflected a disappointing trend. Concurrently, U.S.-Europe tensions linger with unresolved tariff commitments and ongoing trade negotiations involving major global partners.

(With inputs from agencies.)