What type engine uses a tiller for steering?

any engine that is not mounted in such a manner that the engine itself, or at least the propulsion unit of the engine, that it can be turned to either side, and in a vessel that does not employ a wheel to turn the rudder.

SMall outboard engines are the most common form of engine that is steered with a tiller. The tiller is an extension of the engine itself that allows the engine to be turned on its mount.

Many small to medium sized sailboats have a tiller mounted directly to the rudder. These boats have many different types of engines, including outboard motors.