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 Trumps new order say?
According to Reuters Trumps 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 Trumps new order
Japan will get a big benefit from Trumps 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.
What is there for India in the new order?
India is not going to get any immediate benefit from Trumps 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.
Trumps 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.