Advisors to President Donald Trump have unleashed sharp criticism of the European Union's freshly inked trade pact with India, accusing Europe of effectively funding its own economic and geopolitical headaches. The deal, hailed by EU officials as the "mother of all deals," is seen by Trump's camp as a risky play that bolsters India's role in circumventing Western sanctions on Russia.

Scott Bessent, a top economic advisor to the president, didn't mince words, stating that Europe is "financing war against itself" by deepening ties with India. His remarks come as the EU and India finalize an agreement that slashes India's high tariffs on European luxury goods like cars and wine—dropping auto duties from up to 150% to around 40%—while granting Indian exports easier entry into European markets for textiles, pharmaceuticals, and gems. The core gripe? India has been a major buyer of discounted Russian oil since the Ukraine invasion, refining it and shipping products back to Europe. This has kept Moscow's war chest flush despite sanctions, and Trump's team argues the new trade boost will only amplify that flow.

After years of negotiations, the pact promises to supercharge $136 billion in annual bilateral trade, with India exporting far more to the EU than it imports. EU Trade Commissioner Maroš Šefčovič touted it as a strategic win, opening India's vast consumer base to European firms and reducing reliance on volatile U.S. and Chinese markets. Provisions include better access for EU machinery and agri-products, plus labor mobility for Indian skilled workers. However, sticking points like the EU's carbon border taxes on Indian steel could delay full ratification until late 2027.

This move reflects Europe's scramble to diversify amid Trump's aggressive tariff policies, which have hit allies like Canada with 100% duties on select goods. Yet it risks straining transatlantic unity, as the U.S. views India—despite its Quad partnership—as too cozy with Putin. The deal spells growth opportunities in tech and manufacturing, aligning with its push for self-reliance. Globally, it underscores a splintering trade landscape where old alliances bend to new realities. Eyes are now on the upcoming India-EU Summit for formal signing.