UPSC Prelims Practice Questions — EU, U.K. attempt negotiating with Trump, while keeping possibility of retaliation open

Q1. The European Union's Anti-Coercion Instrument (ACI), which member states have considered invoking against the United States over the January 2026 Greenland-linked tariff dispute, entered into force in which one of the following years?

  • A. 2019
  • B. 2021
  • C. 2023
  • D. 2025

Q2. Within the European Union's €93 billion counter-tariff package prepared against United States goods (and suspended under the July 2025 EU-US framework), the single LARGEST share by value is accounted for by which one of the following categories?

  • A. Agri-food products such as bourbon, wine and tobacco
  • B. Industrial goods including aircraft and aircraft parts, cars and car parts, machinery, chemicals and plastics
  • C. Digital services and cross-border data flows
  • D. Intellectual property licensing and audiovisual services

Q3. With reference to the July 2025 EU-US trade framework and the tariff measures announced by the United States in January 2026, consider the following statements: 1. Under the July 2025 EU-US framework, most EU goods entering the United States faced a baseline tariff of around 15%. 2. The January 2026 US tariff announcement applied a uniform 10% rate to goods from all 27 EU member states. 3. Unlike the July 2025 framework, the January 2026 tariffs were explicitly linked by the US administration to demands concerning Greenland. Which of the statements given above is/are correct?

  1. Under the July 2025 EU-US framework, most EU goods entering the United States faced a baseline tariff of around 15%.
  2. The January 2026 US tariff announcement applied a uniform 10% rate to goods from all 27 EU member states.
  3. Unlike the July 2025 framework, the January 2026 tariffs were explicitly linked by the US administration to demands concerning Greenland.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q4. With reference to the United States' tariff announcement of January 2026 linked to the Greenland issue, consider the following European countries: 1. Germany 2. Italy 3. Sweden 4. Spain Which of the above is/are correctly identified as countries named in that tariff announcement?

  1. Germany
  2. Italy
  3. Sweden
  4. Spain
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 1, 3 and 4
  • D. 1, 2 and 3

Q5. In the context of the European Union's Anti-Coercion Instrument, the term 'economic coercion' is most accurately defined as which one of the following?

  • A. Any imposition of import tariffs by a third country on EU exports, irrespective of the third country's underlying motive
  • B. A situation in which a third country seeks to pressure the EU or a Member State into a particular policy choice by applying, or threatening to apply, measures affecting trade or investment
  • C. Cartel-like collusion by foreign firms aimed at distorting prices in EU single-market goods
  • D. Persistent undervaluation of a third country's currency in order to gain an unfair export advantage over EU producers