UPSC Prelims Practice Questions — How is U.S.-India trade deal being tweaked?

Q1. Who among the following is the lead Indian negotiator for the India–U.S. Interim Trade Agreement announced through the Joint Statement of February 7, 2026?

  • A. S. Jaishankar
  • B. Nirmala Sitharaman
  • C. Piyush Goyal
  • D. Ashwini Vaishnaw

Q2. In the context of the India–U.S. Interim Trade Agreement (February 2026), the term 'Dried Distillers' Grains (DDGs)', for which India opened limited market access, refers to which one of the following?

  • A. A protein-rich co-product of ethanol distillation from grains, used mainly as livestock and poultry feed
  • B. A category of dried pulses processed and packaged for direct human consumption
  • C. A variety of fortified rice exported by the United States under food-aid programmes
  • D. Distilled grain spirits aged in oak barrels and classified as agricultural exports

Q3. The 18% reciprocal tariff that the United States will apply on Indian-origin goods under the Interim Trade Agreement announced in February 2026 is being levied under the authority of which one of the following?

  • A. Section 301 of the U.S. Trade Act, 1974
  • B. U.S. Executive Order 14257 of April 2, 2025
  • C. The Smoot–Hawley Tariff Act, 1930
  • D. Section 232 of the U.S. Trade Expansion Act, 1962

Q4. Under the India–U.S. Interim Trade Agreement (February 2026), what is the value of Indian exports to the United States on which the tariff has been reduced from 50% to ZERO (as distinct from those reduced to 18%)?

  • A. USD 10.03 billion
  • B. USD 18.00 billion
  • C. USD 30.94 billion
  • D. USD 40.97 billion

Q5. With reference to changes brought about by the India–U.S. Interim Trade Agreement (February 2026) as compared to the pre-deal tariff regime, consider the following statements: 1. Before the deal, the effective U.S. tariff on most Indian goods stood at 50%, comprising a 25% reciprocal tariff and a 25% additional penal duty linked to India's purchases of Russian oil. 2. The 25% penal duty linked to Russian-oil purchases was removed through a U.S. Presidential Executive Order signed on February 6, 2026, a day before the bilateral Joint Statement. 3. In its revised fact sheet on the deal, the White House replaced the wording that India had 'committed to buy' USD 500 billion of U.S. goods with the wording that India 'intends to buy' the same amount. Which of the statements given above is/are correct?

  1. Before the deal, the effective U.S. tariff on most Indian goods stood at 50%, comprising a 25% reciprocal tariff and a 25% additional penal duty linked to India's purchases of Russian oil.
  2. The 25% penal duty linked to Russian-oil purchases was removed through a U.S. Presidential Executive Order signed on February 6, 2026, a day before the bilateral Joint Statement.
  3. In its revised fact sheet on the deal, the White House replaced the wording that India had 'committed to buy' USD 500 billion of U.S. goods with the wording that India 'intends to buy' the same amount.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3