The Indian government announced it will reduce tariffs on hundreds of consumer goods, ranging from air conditioners to small cars, in a move aimed at boosting domestic consumption as New Delhi seeks to ease the impact of high U.S. tariffs.

This announcement follows the new tariffs imposed last month by U.S. President Donald Trump, which threaten a portion of New Delhi’s exports to the world’s largest market.

Finance Minister Nirmala Sitharaman said in a press conference yesterday evening: “The reduction of the goods and services tax, also known as the consumption tax, has been approved by a high-level government committee and will take effect on September 22.”

According to the Ministry of Finance, the new reform reduces the consumption tax slabs to a two-tier structure of 5% and 18%, replacing the previous system of four slabs: 5%, 12%, 18%, and 28%.

The majority of goods will be subject to lower tax rates, while a special rate of 40% is proposed on some luxury items such as luxury cars, tobacco, and cigarettes. No taxes will be imposed on the purchase of life insurance and health insurance.