- Indian engineering exporters warn of risks from US Russia sanctions bill impacting shipments to the US
- The proposed US bill could impose tariffs up to 100% on countries buying Russian energy
- US is India's largest market for engineering goods, making tariffs a major competitiveness threat
Indian engineering exporters have flagged a fresh risk to shipments to the US from the proposed Russia sanctions bill, which could pave the way for tariffs of up to 100% on countries buying Russian energy.
EEPC India Chairman Pankaj Chadha raised the concern at a Commerce Ministry meeting yesterday on US trade developments. Any additional tariff could put further pressure on exporters already dealing with the US tariff regime, Chadha said.
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The US is the largest market for Indian engineering goods, making any additional levy a potential blow to the sector's competitiveness. The meeting was chaired by Additional Secretary and India's Chief Negotiator for the US trade deal, Darpan Jain.
The meeting was to discuss exporters' concerns ahead of Commerce Minister Piyush Goyal's visit to the US to attend the G-20 trade ministerial meeting to be held from Sept. 30 to Oct. 1.
Goyal will also meet with his counterpart US Trade Representative Jamieson Greer to take forward trade talks.
Chadha added that he also urged the government to ensure that the US assures of no additional tariffs in the future, as part of the US-India Bilateral Trade Agreement terms. He added that a trade deal, if and when signed, should ensure "definite duty advantage" for India.
The EEPC Chairman also raised concerns around the unavailability of emissions data at the level of raw material suppliers, which is leading to non-compliance of the EU's Carbon Border Adjustment Mechanism, which has entered into force starting January this year.
"With CBAM, the basic concern is that raw material importers need to able to provide accredited carbon emission data. They're unable to provide that and hence we can't have test certificates," he said.
The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 has cleared the US Senate and now moves to the House of Representatives. The bill does not name India but could cover major buyers of Russian crude and gas.
Indian engineering exports to the US stood at $19.6 billion in FY26, growing 2.3% year-on-year.
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