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Time to review pause
Financial Express Hyderabad
|August 07, 2025
After Trump's latest blow, the MPC has only 21 days to assess the tariff impact, and plan its future moves
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The Monetary Policy Committee's (MPC) decision earlier on Wednesday to leave interest rates unchanged was just what the doctor ordered—until US President Donald Trump served another bitter pill late in the evening in the form of an additional 25% tariff for purchasing Russian oil. Trump had issued the threat on Tuesday, but no one could even imagine that the blow would be so severe. According to news agency Reuters' estimate, even with the originally proposed 25% tariff and an additional 10% penalty, India could risk losing its competitive edge in nearly $64 billion worth of exports to the US. The new levy will be added on top of any existing tariffs unless otherwise exempted under specific clauses, such as those relating to national security or the Harmonized Tariff Schedule.
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