European countries refused to impose tariffs on India because of the upcoming Free Trade Agreement set to be signed by the two sides, claimed US Treasury Secretary Scott Bessent.
In an interview given to Poilitico, Bessent said the US might mull rolling back 25 per cent tariffs imposed on India amid drop in Russian oil imports.
"We put 25 per cent tariffs on India for buying Russian oil. And the Indian purchases by their refineries of Russian oil have collapsed. So that is a success. The tariffs are still on. The 25 per cent Russian oil tariffs are still on," Bessent told the news outlet.
He then said the USA's "Our virtue-signalling European allies refused to do it (impose tariffs) because they wanted to sign this big trade deal with India."
Bessent alleged that Europe is financing Russia's war by buying the oil refined in India.
"In the ultimate act of irony and stupidity, guess who was buying the refined products from the Indian refineries made from Russian oil. The Europeans. They are financing the war against themselves," he added.
This comes as the European Commission President Ursula von der Leyen and European Council President Antonio Costa are set to hold summit talks with Prime Minister Narendra Modi in New Delhi on January 27. At the summit, India and the EU are set to announce the conclusion of the much-awaited Free Trade Agreement. They will also finalise a strategic defence partnership pact and a framework for mobility of Indian professionals.
During the financial year 2024-25, the trade between India and the EU was worth about $136 billion. This included exports worth $76 billion and imports worth $60 billion.