Jammu and Kashmir Chief Minister Omar Abdullah has expressed his welcome regarding the United States' decision to reduce tariffs on Indian goods, while also voicing caution about the implications for oil prices.

The tariff reduction, announced by U.S. President Donald Trump on Monday, will see tariffs on Indian goods lowered to 18% from the previous 25%. This development follows a period of strained trade relations between the two countries, marked by the U.S. imposing a steep 50% tariff on Indian goods entering American markets from August 27, 2025.

Abdullah acknowledged that these tariffs had been "quite burdensome" for Indian exporters and linked the reduction to a change in India's oil purchasing strategy. According to Abdullah, the U.S. President had expressed dissatisfaction with India's oil imports from Russia. Trump stated that the Indian government has now stopped purchasing oil from Russia, leading to the tariff reduction.

The Chief Minister stated, "By reducing tariffs, our exports will benefit. This is a good step because many of our exporters were facing a lot of difficulties. Some of them thought that they would have to stop working. Now that the tariffs have been reduced, it is hoped that their business will start again".

However, Abdullah also expressed caution regarding the potential impact on domestic fuel prices. "If we have stopped buying oil from Russia, it is a good thing. On the contrary, where will we buy oil from? Will buying oil from them increase the price of petrol and diesel? We will have to wait for that," Abdullah stated.

The U.S. decision to reduce tariffs has been largely welcomed across India, with many anticipating a boost to the country's export sector. Revenue Secretary Arvind Shrivastava stated that the India-U.S. trade deal will expand trade between the two countries, creating opportunities for India's labor-intensive and manufacturing sectors in the U.S. market.

Prime Minister Narendra Modi also welcomed the announcement, stating that "Made in India" products will now have a reduced tariff of 18% in the U.S. He added that cooperation between the two largest democracies benefits their people and unlocks opportunities for mutually beneficial cooperation.

However, some concerns have been raised regarding the details of the trade deal. Kanimozhi Karunanidhi, a Member of Parliament, has pointed out the lack of communication from the Prime Minister's office and has expressed concerns about the interests of Indian farmers.

The reduction in tariffs is expected to provide a boost to several sectors, including textiles, leather, gems and jewellery, seafood exports, and specialty chemicals. Notably, India's textile exports to the U.S. are poised for a revival after a nearly 30% decline due to high tariffs. However, some stress was seen in clusters like Tirupur, although major job losses were avoided.

The move towards reduced tariffs reflects a broader effort to strengthen economic ties between India and the U.S. It also comes amid discussions about governance reforms in Jammu and Kashmir, with stakeholders emphasizing the need for policy initiatives in key sectors such as power, horticulture, and industries.