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"Trade Over Ukraine": Trump team criticises Europe over India-EU deal

Published On Thu, 29 Jan 2026
Arjun Mehta
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President Donald Trump's top advisors have sharply criticized the European Union for sealing a landmark free trade agreement with India, calling it a betrayal of the collective stand against Russia's war in Ukraine. The deal, hailed by EU Commission President Ursula von der Leyen as the "mother of all deals," eliminates tariffs on over 90% of goods after nearly two decades of negotiations, but Team Trump sees it as Europe putting commerce ahead of solidarity.

In a pointed ABC News interview, Trump's nominee for Treasury Secretary Scott Bessent accused Europe of "funding a war against itself" through the pact. He highlighted the US's tougher measures, like imposing 25% tariffs on Indian imports over New Delhi's Russian oil purchases, while the EU opens its markets wide. "America has sacrificed far more than Europe on Ukraine," Bessent stated, noting stalled US-India talks amid Trump's aggressive trade stance. Fellow appointee Jamieson Greer, Trump's trade rep pick, conceded India gains the most from access to Europe's vast consumers but warned of broader alliance strains. This echoes Trump's long-standing frustration with NATO allies, whom he often labels as freeloading on US security spending—now extending to trade amid the Ukraine crisis.

The India-EU Free Trade Agreement boosts Indian exports in textiles, drugs, and machinery, eyeing a doubling of trade volumes by 2032 and creating thousands of jobs. Europe secures easier services access and labor mobility in India, alongside defense cooperation pacts. Indian PM Narendra Modi celebrated it as a "game-changer," especially as a buffer against US tariffs that hit EU steel and Indian goods hard last year.

Announced January 27, the pact arrives as Trump prepares his second-term tariff blitz, potentially sparking US countermeasures like new duties on EU or Indian products. India, the world's fastest-growing major economy, deftly balances ties with both powers. For Europe, reeling from Ukraine-related energy shocks, it's a vital economic lifeline. Businesses worldwide should watch closely: In a fragmenting trade landscape, such deals signal the need to hedge bets beyond America First policies.

Disclaimer: This image is taken from NDTV.