EEPC India Warns of Competitiveness Loss if New Tariffs Enacted

The engineering export promotion council of India (EEPC India) released a stark warning after the U.S. Senate cleared a bill that could impose steep tariffs on imports linked to Russian energy. Chairman Pankaj Chadha emphasized that the United States remains the top destination for Indian engineering goods, with the sector recording $19.6 billion in exports during FY 2025‑26.

"Any additional levy would directly dent the price advantage Indian manufacturers enjoy in the U.S. market," Chadla told reporters. While the legislation—officially titled the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026—does not single out India, its mechanism of targeting the largest importers of Russian crude, gas and sanction‑evasion support could extend to Indian firms indirectly.

The bill cleared the Senate with an 86‑11 majority and now proceeds to the House of Representatives, where senior Democratic lawmakers have expressed reservations about the tariff provisions. The act mandates the Treasury to use trade data to identify the five biggest importers in each category, reviewing the list every 180 days. EEPC India urged the Indian government to engage with U.S. counterparts to mitigate any adverse impact on bilateral trade.