US President Donald Trump has issued a new executive order, under which on Monday (August 8, 2025), a tariff exemption will be given to business partner countries that will make agreement on industrial exports with the US. The advantage of this exemption will be specially given on important things like nickel, gold, pharmaceutical compound, and chemicals. It aims to reorganize the global trade system, reduce the US trade deficit and motivate business partners to overpowder.

What is special in the new order?
Under this order of Trump administration, categories of more than 45 things have been included, on which Alaind Patanors will get zero import tariffs. These partners will be the countries that will sign the Framework Agreement with the US and promise to reduce the reciperook tariffs and charges imposed by the Trump administration. The step is also in line with agreements made with the current coalition countries of the US including Japan, the European Union (EU). This exemption will be implemented from 12 noon on Monday.

What are the discounts on what
According to the White House, tariff cuts will apply to items that cannot be grown, mined or naturally generated in the US or whose domestic production is insufficient. These discounts include natural graphite, different types of nickels (which are essential for stainless steel and electric vehicle batteries), pharmaceutical compounds such as lidocaine and medical diagnostic tests. Apart from this, different things of gold are also included in these discounts powder, leaves and bullion.

Special provisions and changes
In this order, exemption has also been given for some special agricultural products, aircraft and its parts, and non-petitioned pharmaceutical things. Under the order, once the US Trade Representative (USTR), the Department of Commerce and the Customs will be able to waive the tariffs on these items independently after the new executive order is required without a new executive order. Also, this new order has canceled the exemption given some earlier, including plastic and polysilicon (which is essential for solar panels).

Current status and impact
Major supply countries like Switzerland, which have not yet received an agreement with Washington, have a tariff of 39%. With this step, the US wants to reduce the dependence of goods that cannot be made available in sufficient amounts domestic. Due to the new order, global trade will have a big impact and will also help in protecting America’s industrial interests.

The US has issued a formal notification to impose 25 percent additional tariffs on goods imported from India. This new tariff will be effective from August 27, 2025 at 12:01 pm (Indian time at 9:30 am). In the notification issued by the Trump administration, it has been said that this tariff is associated with the threats given by the Russian government to the US and under this India has been targeted.

What goods will be discount on

The effect of the new tariff can be seen on areas like jewelery, sea food, carpet, furniture chemicals, and auto parts. Some areas like human aids such as food, pharmaceuticals are still exempted from it. The goods which are in transit loaded on the ship before 27 August 2025 and reach America by 17 September 2025 will not put exemption on exemption.

Books, movies, posters, records, photos, CDs, art work will be exempted from additional tariffs. Some special sectors which have already been included in other executive orders, such as iron, steel, almunium, passenger vehicle, copper products will be discount on these items.

India, America’s third largest exporter

Donald Trump wants India to enter the US in its agriculture and dairy markets, but the Modi government has made it clear that it will take decisive steps to protect the interests of the farmers of the country.

India and Vietnam are the third largest exporter in the US after 9 per cent. In the last five years, India has increased its market share in the US on the price of China, which has increased from 6 per cent to 9 per cent, while China’s stake has come down from 38 per cent to 25 per cent.

Also read: How much loss in export to India with 50% tariff of Trump? China and Vietnam can take advantage; Learn how

Former US Ambassador to the United Nations, Nikki Haley has given a clear warning that the US-India relations are on the verge of breaking up. He said that if America wants to rein in China’s growing ambitions, then it will have to give priority to relations with India.

In an article published in Newsweek on Wednesday (20 August 2025), Haley wrote that America should not ignore the most important thing that our target is China. America must have a friend as India to face him.

My latest w/ my @Hudsoninstute colleague @bill_drexel for @Newsweek,

To counter China, rebuild us – India relationship, more here: https://t.co/ji29unzvnx pic.twitter.com/YHUFS1LGXH

– Nikki Haley (@nikkihaley) August 20, 2025

Controversy over tariffs and dandruff
Haley’s statement comes at a time when there has been an increased tension between America and India over trade disputes and Russian oil imports. President Donald Trump has imposed 25% mutual fee and 25% additional tariffs on India, which will be applicable from August 27. Haley admitted that Russia is getting financial help for Ukraine War due to India buying oil, but at the same time he warned that it would be a strategic mistake to treat India like an enemy.

India’s important role in stopping China
Haley said that India is the only country to combat China’s dominance in Asia. India has the ability to manufacture on a scale like China, which can help America to meet the demand for its supply chain through India instead of China. India’s strong defense relations with countries like America and Israel make it important for the safety of the world. Haley believes that India will weaken China’s ambitions in the coming time.

Trump-Modi conversation appeal
Haley suggested that President Donald Trump and Prime Minister Narendra Modi should talk directly to remove misunderstandings between the two countries. He said that if this does not happen, China will take advantage of this rift. Haley referred to her article in 1982 from Indira Gandhi’s words of US President Ronald Reagan. He wrote that America and India can sometimes adopt different routes, but their destination should remain the same. Haley reiterated that America needs to keep friendship with India to face China’s challenge.

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