UPSC Prelims Practice Questions — American trade tariff turmoil leaves Treasury markets in dazed condition

Q1. Which US federal agency operates the online portal through which importers file refund claims for tariffs invalidated by the US Supreme Court's February 2026 IEEPA ruling?

  • A. US Customs and Border Protection (CBP)
  • B. Internal Revenue Service (IRS)
  • C. Office of the US Trade Representative (USTR)
  • D. Bureau of Industry and Security (BIS)

Q2. With reference to the US Supreme Court's February 2026 ruling on tariffs imposed by the Trump administration, consider the following statements: 1. The ruling invalidated tariffs that had been imposed under the International Emergency Economic Powers Act (IEEPA). 2. The Court's decision also struck down Section 232 tariffs on steel, aluminium and automobiles. 3. The judgment was delivered by a 6-3 majority of the Court. 4. The Court held that the imposition of tariffs is an inherent peacetime power of the US President. Which of the statements given above is/are correct?

  1. The ruling invalidated tariffs that had been imposed under the International Emergency Economic Powers Act (IEEPA).
  2. The Court's decision also struck down Section 232 tariffs on steel, aluminium and automobiles.
  3. The judgment was delivered by a 6-3 majority of the Court.
  4. The Court held that the imposition of tariffs is an inherent peacetime power of the US President.
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 1, 2 and 3
  • D. 1, 3 and 4

Q3. In the WTO's recent commentary on the impact of US tariff policy on global trade, what does the term 'frontloading' most precisely refer to?

  • A. The practice of central banks accelerating interest-rate hikes early in the cycle to pre-empt tariff-driven inflation
  • B. Importers accelerating shipments to enter the United States before higher tariff rates come into force
  • C. Exporting countries pre-paying anticipated tariff revenues to the US Treasury to secure preferential market access
  • D. The bunching of bond issuances by the US Treasury early in the fiscal year to finance projected tariff refunds

Q4. The tariffs struck down by the US Supreme Court in February 2026 in Learning Resources, Inc. v. Trump had been imposed by the President under which one of the following US statutes?

  • A. Section 232 of the Trade Expansion Act, 1962
  • B. Section 301 of the Trade Act, 1974
  • C. International Emergency Economic Powers Act, 1977
  • D. Smoot-Hawley Tariff Act, 1930