US Tariff Easing Brings Relief to Indian Exports, But Raises Concerns Over Energy Security

New Delhi:Jammu and Kashmir Chief Minister Omar Abdullah on Tuesday welcomed the United States government’s decision to ease reciprocal tariffs on Indian exports, calling it a much-needed reprieve for the country’s struggling trade community. Abdullah, speaking to reporters in the Jammu Assembly lawns, said the rollback was a relief but also highlighted the geopolitical context behind it. “The tariffs had become extremely onerous for us, and we are well aware of the reasons behind their imposition. United States was displeased with India’s continued oil imports from Russia. President Trump has now announced that the Indian government has halted those purchases, and consequently, the punitive tariffs will no longer apply to our exports,” he said. While welcoming the tariff relief, Abdullah raised concerns about India’s future energy security. He questioned where the BJP-led central government would now source oil, given the halt in Russian imports, and whether alternative arrangements might push petrol and diesel prices higher. “For that, we have to wait and see,” he said, hinting at possible inflationary pressures that could affect ordinary citizens. Chief minister stressed that the tariff reduction would directly benefit exporters, particularly small and medium enterprises that had been under immense strain. “This reduction will provide a much‑needed boost to our export sector. Many of our traders had been grappling with severe challenges, some even fearing they would be forced to shut down operations. With tariffs now eased, we anticipate that businesses will regain stability and begin to flourish once again,” Abdullah said. Meanwhile, for exporters in Jammu and Kashmir, however, the rollback has brought immediate relief. The textile, handicraft, carpet, and walnut furniture industries; sectors with strong representation in the region stand to gain significantly. “For months, our American buyers were hesitant to place orders because the 50 per cent tariff made Kashmiri carpets unaffordable in their markets. With the reduction to 18 per cent, we expect demand to revive. This is not just about business; it’s about sustaining centuries-old craftsmanship,” said Mohammad Yousuf, a carpet trader from Srinagar’s downtown. “Walnut wood furniture is one of Kashmir’s prized exports, but the steep duties had made our products too costly abroad. American clients were pulling back. This tariff relief gives us breathing space, though rising fuel costs could still affect shipping,” said Farooq Mir, a walnut furniture exporter from Budgam. “US market is crucial for Kashmiri shawls and paper-mâché crafts. The tariff hike had nearly killed our orders. This rollback means our products can compete again, but we worry about rising petrol prices affecting transport costs within India,” said Nusrat Jan, a handicraft exporter. Meanwhile, Trade analysts said that the US decision is not merely economic but also geopolitical. India’s move to cease oil imports from Russia aligns with Washington’s sanctions regime, unlocking tariff concessions but simultaneously exposing India to uncertainties in global energy markets.