Proposed US Tariffs May Hit Indian Engineering Exports: Industry

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 concerns over India’s engineering exports, industry body EEPC India said on August 8.

EEPC India Chairman Pankaj Chadha said the development is significant as the United States remains the largest market for Indian engineering goods.

“This development is really concerning for us, considering the US is the top market for Indian engineering goods,” said Pankaj Chadha, Chairman of EEPC India. He added that while the bill is yet to complete the legislative process, any additional levy could 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 said.

Engineering exports from India to the US remained positive in FY26 despite earlier tariffs imposed by the Trump administration, with shipments reaching $19.60 billion, registering a 2.3 per cent year-on-year growth.

The bill, passed in the US Senate by an 86-11 vote, now moves to the House of Representatives. It does not name India directly but allows the US administration to identify countries based on trade data that are among the largest importers of Russian crude oil and natural gas, or those facilitating sanctions evasion.

The legislation proposes tariffs of up to 100 per cent on such countries, with determinations to be made based on the most recent 12-month trade data and reviewed every 180 days.

Industry stakeholders said the move, if implemented, could affect export competitiveness and trade flows, particularly for countries like India that maintain energy trade links while expanding exports to the US market. (IANS)