Omar Abdullah Hails US Tariff Cut, Calls It Major Relief for Indian Exporters
Tariff Reduction Positive Step for Trade, Omar Abdullah Tells Reporters
Jammu, Feb 3: Jammu and Kashmir Chief Minister Omar Abdullah on Tuesday welcomed the decision of the United States to reduce reciprocal tariffs on Indian goods, describing the move as a significant relief for exporters across the country who have been grappling with mounting pressures due to high duties.
The development follows an announcement by US President Donald Trump, who said that India and the United States have reached a trade understanding under which Washington will bring down the reciprocal tariff on Indian goods to 18 per cent from the existing 25 per cent. The decision assumes particular importance for India as American authorities had earlier imposed a steep 50 per cent tariff on Indian goods entering US markets from August 27, 2025, creating serious concerns within export-oriented sectors.
Speaking to reporters in the lawns of the Jammu and Kashmir Legislative Assembly, Omar Abdullah said the earlier tariff regime had placed a heavy burden on Indian exporters and had begun to affect their competitiveness in international markets. He noted that many exporters were facing severe difficulties, with some even fearing the possibility of having to shut down their operations if the situation continued.
“These tariffs were proving to be quite burdensome for us, and we also know very well why these tariffs were imposed,” the Chief Minister said, adding that the United States had expressed dissatisfaction over India’s continued purchase of oil from Russia. He referred to President Trump’s statement that India has now stopped sourcing oil from Russia, and that, in view of this development, the higher tariffs would no longer be imposed.
Abdullah remarked that if the Indian government has indeed decided to discontinue oil imports from Russia, it could be viewed as a positive step from a diplomatic standpoint. At the same time, he raised a note of caution regarding the economic implications of such a shift.
He questioned where the country would source its oil from in the absence of Russian supplies and whether alternative procurement arrangements would lead to higher import costs. “Whether this will have an impact on petrol and diesel prices in the country is something we will have to wait and see,” he said.
On the broader impact of the tariff reduction, the Chief Minister expressed hope that the move would restore confidence among exporters and help revive business activity. He said lower duties would make Indian goods more competitive in the US market, thereby opening up better opportunities for trade and expansion.
“It will benefit our exports, which is a good step, as many of our exporters were facing significant challenges. Now that tariffs have been reduced, we hope that their businesses will begin to thrive again,” Abdullah said.
