New Delhi, August 8, 2026 (Yes Punjab News)
The US Senate’s approval of legislation that could empower President Donald Trump to impose tariffs of up to 100 per cent on countries importing Russian energy has triggered concern in India’s engineering export sector, with industry body EEPC India warning of potential implications for shipments to the US.
EEPC India Chairman Pankaj Chadha said the development was particularly concerning because the US remains the largest market for Indian engineering goods. However, he cautioned that it would be premature to assess the legislation’s eventual impact as the Bill still has to complete the US legislative process.
“This development is really concerning for us, considering the US is the top market for Indian engineering goods,” Chadha said.
He said the proposed legislation, titled the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, could significantly affect Indian goods exports if approved by Congress and enacted into law. Any additional tariff, he added, could reduce the competitiveness of Indian shipments in the US market.
Indian engineering goods exports to the US remained positive during 2025-26 despite tariffs imposed by the Trump administration. Exports during the financial year stood at $19.60 billion, registering year-on-year growth of 2.3 per cent.
The Senate passed the Russia sanctions legislation by an 86-11 vote. Although India is not specifically named in the Bill, its provisions could potentially cover India and other major buyers of Russian energy.
The legislation would require the US administration to identify countries based on trade data rather than naming them directly. It covers the five largest importers of Russian crude oil, the five largest importers of Russian natural gas and the five countries identified as leading facilitators of Russian oil sanctions evasion.
The countries covered under these categories would be determined using data from the most recent 12-month period, with the assessments to be reviewed every 180 days.
The Bill will now move to the US House of Representatives, where senior Democrats have raised objections to its tariff-related provisions.
EEPC India said the potential impact on Indian exports would depend on the legislation’s final form and whether it is ultimately enacted.
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