New US tariff bill causes concern for India's engineering exports: Industry
New Delhi, Aug 8
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.
"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.
— IANS
Reader Comments
As someone who works in international trade, this is a classic case of the US using economic coercion for geopolitical goals. India has every right to buy energy from wherever it wants for its people. We need stronger trade diversification strategies - looking at EU, Africa, and Southeast Asia markets instead of being so dependent on the US.
Honestly, this feels like bullying. Just because we buy oil from Russia, they want to punish our exporters? India is not a small country - we should stand firm and not cave into pressure. At the same time, our exporters should explore new markets and not rely solely on the US. Make in India needs global partnerships, not dependency. 💪
At some point, we need to ask ourselves - why are we still dependent on the US for our export growth? The government's PLI schemes and infrastructure development have been good, but we need to push harder on free trade agreements with the EU, UK, and Gulf countries. Diversification is the only way to protect ourselves from such politically motivated tariffs.
It's disappointing that our diplomacy hasn't been more effective in preventing these threats. We are one of the fastest growing economies but keep getting pushed around in trade matters. The industry's concern is very valid - $19.6 billion is a lot of money to potentially lose. I hope the government takes this seriously and negotiates strongly before this bill becomes law.
EEPC India is right to raise the alarm early. Our engineering exporters work on thin margins, and any extra 20-100% tariff would simply make our products uncompetitive. But I also see this as an opportunity - the government should use this as
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