US tariff bill raises concern over Indian engineering exports

The US Senate's approval of a bill allowing tariffs of up to 100 per cent on major importers of Russian energy has raised concerns over Indian engineering exports. EEPC India warned that additional levies could affect the competitiveness of Indian shipments

New Delhi: The US Senate’s approval of a bill empowering President Donald Trump to impose tariffs of up to 100 per cent on top importers of Russian energy has raised concern about engineering exports from India, an industry body said on Saturday.

Though the bill is yet to complete the legislative process, a statement from EEPC India warned of potential fallout if the measure becomes law.

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“This development is really concerning for us, considering the US is the top market for Indian engineering goods,” said Pankaj Chadha, Chairman, EEPC India.

“While the bill is yet to complete the legislative process, the development is really concerning for us,” he said, as any additional levy would dent the competitiveness of Indian shipments.

“The bill, named the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, if approved by the US Congress and becomes law, may have a significant impact on Indian goods exports. At present, however, it would be premature to discuss any possible impact of this legislation,” Chadha noted.

The engineering goods exports to the US stayed positive in financial year 2025-26 despite US President Donald Trump’s recently imposed tariffs, but any additional levy would dent competitiveness of shipments.

Indian engineering goods exports to the US touched $19.60 billion in value, with 2.3 per cent year‑on‑year growth. The US Senate passed a sweeping Russia sanctions bill that does not name India but could expose it and other major buyers of Russian energy to tariffs of up to 100 per cent.

Passed by the Senate by 86-11 vote, the Lindsey Graham Sanctioning Russia and Iran Act of 2026 now goes to the House of Representatives, where senior Democrats have objected to its tariff provisions.

The legislation requires the administration to identify countries using trade data rather than naming them in the statute. It covers the five largest importers of Russian crude oil, the five largest importers of Russian natural gas and the five leading countries facilitating Russian oil sanctions evasion.

Those determinations would be based on the most recent 12-month period and reviewed every 180 days.