India and the European Union (EU) have completed the long-running Free Trade Agreement (FTA) negotiations. This step has come at a time when US President Donald Trump’s tariff policy has increased tension in the trade relations of many countries of the world. America has made strong allegations against India especially for purchasing oil from Russia.

India-EU FTA: Negotiations completed
FTA negotiations between India and the European Union started in 2007. Now both sides have said that the agreement is ready for ‘legal scrutiny’. It can be formally announced on January 27. European Commission President Ursula von der Leyen has called it the ‘mother of all agreements’.

America’s accusation on Russian oil
US Treasury Secretary Scott Besant said that India buys crude oil from Russia, refines it and then European countries buy the same oil product. According to him, this is funding the Russia-Ukraine war. He claimed that because of this America imposed 25% tariff on India, which was later increased to 50%.

Trump administration’s tough stance
America, under the leadership of Donald Trump, said that it has ‘sacrificed’ more than Europe to end the Russia-Ukraine war. The Trump administration believes that Europe is funding the war going on against itself.

Tariff up to 50% on India
America has imposed a total of 50% tariffs on India. Out of this, 25% tariffs have been imposed specifically for purchasing oil from Russia. This decision was taken in August 2025. Amidst all this, Donald Trump extended best wishes on India’s 77th Republic Day. He said that India and America are the world’s largest and oldest democracies and their relations are historical.

Republican leaders disagree with Trump’s policy
Republican Party Senator Ted Cruz reportedly said that Trump’s tariff policy could harm America. According to a media report, he had warned Trump that this could lead to electoral loss and political crisis.

Canada also inclined towards India
Due to America’s strict trade policy, Canada is also renewing its relations. Under the leadership of Prime Minister Mark Carney, Canada is considering India as an important strategic and trading partner. America has also warned of imposing heavy tariffs on Canada. Experts believe that India can benefit from strengthening relations with the European Union and Canada. With this, India is expected to get energy security, new markets and some relief from the tariff pressure of America.