'Europe is financing a war against itself', US irked by India-EU 'mother of all deals'

News Topical, Digital Desk : A major trade deal is set to be signed between India and the European Union today, Tuesday, January 27. The United States is closely monitoring this deal.

The strengthening of trade ties between India and the European Union has irritated the United States. US Treasury Secretary Scott Bessant said, "By signing deals with India, the EU is declaring war on itself."

US warns EU

US Treasury Secretary Scott Bessant warned that Europe is financing a war against itself by signing the 'mother of all trade deals' with India.

Scott Bessant said, 'Europe may have largely ended direct energy ties with Moscow, but they are indirectly funding the Russia-Ukraine war by purchasing Russian oil products refined in India, while Washington has imposed tariffs on New Delhi.'

Bessant's statement comes as India and the European Union have concluded negotiations on a long-pending free trade agreement, with a formal announcement expected on Tuesday.

Bessant claimed that US President Donald Trump has tried to broker a compromise on the Russia-Ukraine conflict and said that the US has sacrificed more than the EU.

Trade deal between India and the European Union

The EU currently levies a tax of around 10 per cent on goods and labour-intensive sectors coming from India, whereas normally it should be 3.8 per cent.

India imposes an average tax of 9.3 percent on European goods, with the highest tax rate being 35.5 percent on automobiles and their parts and 10.4 percent on plastics.

After the deal between India and the European Union, it is expected that this tax on most of the items can be reduced or completely abolished.

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