UPSC Prelims Practice Questions — India tested, from U.S. sanctions to one-sided trade deal

Q1. Among the major Asian competing exporters to the United States, which country faces the highest U.S. reciprocal tariff rate as recorded after the India-U.S. Framework for an Interim Agreement on Reciprocal Trade (February 2026)?

  • A. Vietnam
  • B. Bangladesh
  • C. China
  • D. Indonesia

Q2. With reference to the India-U.S. Framework for an Interim Agreement on Reciprocal Trade (February 2026), consider the following items stated to have been kept outside India's tariff concessions to the United States: 1. Maize 2. Wheat 3. Soybean oil 4. Poultry Which of the above is/are NOT correctly identified?

  1. Maize
  2. Wheat
  3. Soybean oil
  4. Poultry
  • A. 1 and 2
  • B. 2 and 4
  • C. 3 only
  • D. 1, 2 and 4

Q3. Under the India-U.S. Framework for an Interim Agreement on Reciprocal Trade (February 2026), India has agreed to eliminate or reduce tariffs on which of the following imports from the United States? 1. Dried distillers' grains (DDGs) 2. Red sorghum for animal feed 3. Indian basmati rice 4. Tree nuts Which of the above is/are correctly identified?

  1. Dried distillers' grains (DDGs)
  2. Red sorghum for animal feed
  3. Indian basmati rice
  4. Tree nuts
  • A. 1 and 2 only
  • B. 1, 2 and 4
  • C. 2 and 3 only
  • D. 1, 3 and 4

Q4. Under Section 231 of the U.S. Countering America's Adversaries Through Sanctions Act (CAATSA) — the provision invoked over India's S-400 acquisition — what is the minimum number of distinct sanctions the U.S. President is required to impose on a government undertaking a significant defence or intelligence transaction with the Russian Federation?

  • A. At least 3
  • B. At least 5
  • C. At least 7
  • D. At least 10

Q5. In the context of the India-U.S. trade dispute culminating in the February 2026 Framework, the term 'reciprocal tariff' is most accurately described as which of the following?

  • A. A tariff that is automatically set equal to the tariff a trading partner imposes on similar U.S. goods, line by line
  • B. A country-specific additional duty imposed by the United States over and above existing Most-Favoured-Nation rates on imports from a designated trading partner under executive trade powers
  • C. A tariff reciprocally negotiated and bound in each country's WTO tariff schedule
  • D. A retaliatory tariff applied only on goods originating from non-WTO members