UPSC Prelims Practice Questions — Why did U.S. SC reject Trump’s tariffs?
Q1. In the context of the U.S. Supreme Court's tariff ruling, Section 122 of the Trade Act of 1974 — the statute under which President Trump reimposed tariffs after the IEEPA verdict — empowers the President to:
- A. Impose a temporary import surcharge of up to 15% for 150 days to address large and serious balance-of-payments deficits
- B. Impose tariffs of any rate on imports found to threaten national security
- C. Retaliate with duties against countries engaging in unjustifiable or unfair foreign trade practices
- D. Levy safeguard duties indefinitely against a sudden surge of imports causing injury to a domestic industry
Q2. With reference to the legal architecture of the U.S. Supreme Court's 2026 tariff ruling, consider the following:
1. IEEPA, 1977 — a peacetime statute carved out of the Trading with the Enemy Act, 1917
2. Section 232 of the Trade Act of 1974 — the basis on which Trump reimposed a 10% tariff after the ruling
3. Article I, Section 8 of the U.S. Constitution — vests the power to lay and collect duties in Congress
4. Court of International Trade — the bench that delivered the 6-3 verdict against the IEEPA tariffs
Which of the above is/are correctly identified?
- IEEPA, 1977 — a peacetime statute carved out of the Trading with the Enemy Act, 1917
- Section 232 of the Trade Act of 1974 — the basis on which Trump reimposed a 10% tariff after the ruling
- Article I, Section 8 of the U.S. Constitution — vests the power to lay and collect duties in Congress
- Court of International Trade — the bench that delivered the 6-3 verdict against the IEEPA tariffs
- A. 1 and 3
- B. 2 and 4
- C. 1, 2 and 4
- D. 3 only
Q3. Consider the following statements comparing the struck-down IEEPA tariffs with the Section 122 tariffs Trump reimposed thereafter:
1. The IEEPA tariffs were struck down for lacking clear congressional authorisation, whereas the Section 122 tariffs rest on an express statutory grant.
2. Unlike the open-ended IEEPA tariffs, Section 122 caps the surcharge at 10% — the rate Trump actually applied.
3. Whereas the IEEPA tariffs were premised on a declared national emergency, Section 122 tariffs are aimed at addressing balance-of-payments deficits.
Which of the statements given above is/are correct?
- The IEEPA tariffs were struck down for lacking clear congressional authorisation, whereas the Section 122 tariffs rest on an express statutory grant.
- Unlike the open-ended IEEPA tariffs, Section 122 caps the surcharge at 10% — the rate Trump actually applied.
- Whereas the IEEPA tariffs were premised on a declared national emergency, Section 122 tariffs are aimed at addressing balance-of-payments deficits.
- A. 1 and 2 only
- B. 1 and 3 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q4. Who authored the majority (opinion of the Court) in the U.S. Supreme Court's 6-3 decision striking down the IEEPA tariffs (Learning Resources, Inc. v. Trump, 2026)?
- A. Chief Justice John Roberts
- B. Justice Elena Kagan
- C. Justice Brett Kavanaugh
- D. Justice Neil Gorsuch
Q5. With reference to the U.S. Supreme Court's tariff ruling and its aftermath, consider the following statements:
1. The Court ruled 6-3 that IEEPA does not authorise the President to impose tariffs.
2. Following the ruling, Trump invoked Section 122 of the Trade Act of 1974 to impose a 10% global tariff.
3. The Court held that the constitutional power to lay tariffs belongs to Congress under Article I, Section 8.
4. IEEPA was enacted in 1977 as a wartime statute to regulate trade exclusively with enemy nations.
Which of the above is/are NOT correctly stated?
- The Court ruled 6-3 that IEEPA does not authorise the President to impose tariffs.
- Following the ruling, Trump invoked Section 122 of the Trade Act of 1974 to impose a 10% global tariff.
- The Court held that the constitutional power to lay tariffs belongs to Congress under Article I, Section 8.
- IEEPA was enacted in 1977 as a wartime statute to regulate trade exclusively with enemy nations.
- A. 1 and 2
- B. 2 and 3
- C. 4 only
- D. 3 and 4