The Indian government announced it will reduce duties 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 U.S. President Donald Trump imposing new tariffs last month that threaten part of New Delhi’s exports to the world’s largest market.

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

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

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