Donald Trump’s new order exempts THESE countries from tariffs; where does India stand?

This exemption will come into effect from Monday, 8 September 2025.

Updated: September 7, 2025 12:58 AM IST

New Delhi: US President Donald Trump has signed a new executive order, under which countries that have trade agreements with the US will get tariff exemption on many goods. This exemption will come into effect from Monday, 8 September 2025. The purpose of this order is to reshape the global trade system, reduce the US trade deficit and strengthen trade relations with partner countries.

What does Trump’s new order say?

According to Reuters, Trump’s executive order offers tariff exemption on more than 45 categories of goods. This exemption will be given to those countries which will sign reciprocal trade agreements with the USA. This move is in line with the agreements already made with Japan, the European Union (EU) and other coalition countries. This order opens the way for tariff exemption for those countries which will make big and beneficial trade deals with the US.

Which items will be exempted?

Under this order, tariff exemption will be applicable on those items which can neither be grown, mined, nor produced in sufficient quantity in America. These include.

• Natural graphite
• Neodymium magnets
• LEDs
• Key components of solar panels
• Plastics and polysilicon
• Nickel
• Gold
• Generic medicines and chemicals
• Agricultural products
• Aircraft and their parts
• Non-patent medicines

Big benefit for Japan from Trump’s new order

Japan will get a big benefit from Trump’s new order. Recently, a trade agreement was also signed between America and Japan, in which the tariff on Japanese imports, especially automobiles and auto parts, has been reduced from 27.5% to 15%. In return, Japan has promised to invest $ 550 billion in America.

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What is there for India in the new order?

India is not going to get any immediate benefit from Trump’s new order. India has not been included in the list of tariff exemptions. A 50 percent tariff is still applicable on India. However, the way Trump has praised Prime Minister Narendra Modi, and in response, PM Modi has thanked Trump, it is expected that Trump will soon announce some relief regarding the heavy tariff imposed on India.

HIGHLIGHTS

• Donald Trump’s new order exempts several countries from tariffs.
• This exemption will come into effect from Monday, 8 September 2025.
• The purpose of this order is to reshape the global trade system, reduce the US trade deficit and strengthen trade relations with partner countries.
• Trump’s executive order offers tariff exemption on more than 45 categories of goods.

This exemption will be given to those countries which will sign reciprocal trade agreements with the USA. This move is in line with the agreements already made with Japan, the European Union (EU) and other coalition countries. This order opens the way for tariff exemption for those countries which will make big and beneficial trade deals with the US.