US Expresses Disappointment Over India-EU Trade Deal, Potential Implications for Global Markets

The European Union's landmark trade agreement with India has drawn sharp criticism from US Treasury Secretary Scott Bessent, who accused Europe of double standards in foreign policy. The deal, which lowers tariffs and grants market access, notably allows EU vehicle manufacturers to enter India with reduced duties—a strategic shift that could realign Asian trade flows.

Bessent's remarks highlight growing tensions between Western allies, particularly regarding European reliance on US security funding while pursuing independent economic partnerships. 'America has pledged billions to protect Ukraine despite the Europeans doing little to nothing,' he told ABC News, framing the India agreement as a backdoor maneuver.

Indian officials maintain the pact won't affect US relations, with Petroleum Minister Hardeep Singh Puri calling ties 'unshakable.' Yet the timing raises questions about potential Ripple effects in upcoming US-India trade negotiations, which could impact commodity markets and supply chains.