Chennai, Aug. 8 -- India will have to strike a balance between the domestic inflation and potential export loss as well as broader economic fallout from the United States' newly imposed 50 per cent import duty (25 percent reciprocal duty and 25 percent penalty for buying oil from Russia), said Moody's Ratings.
The tariff comprising a 25 per cent reciprocal duty and an additional 25 per cent penalty for India's purchases of Russian oil was authorised by US President Donald Trump through an executive order signed on August 6. The penalty takes effect 21 days after signing, leaving a window for negotiations.
Moody's Ratings said the additional tariff increases the potential strain from the 25 percent rate for the so-called reciprocal tariff ...