UPSC Prelims Practice Questions — U.S. Supreme Court rejects Trump tariffs

Q1. The 2026 U.S. Supreme Court ruling in Learning Resources, Inc. v. Trump invalidated the sweeping 'reciprocal' import tariffs imposed by the President under which one of the following U.S. 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

Q2. With reference to the U.S. statutory authorities relevant to the 2026 Supreme Court ruling on Presidential tariffs, consider the following statements: 1. The International Emergency Economic Powers Act (IEEPA), enacted in 1977, replaced the Trading with the Enemy Act of 1917 as the principal peacetime statute for Presidentially-declared economic emergencies. 2. Section 122 of the Trade Act of 1974 caps any Presidential import surcharge at 15% ad valorem and at a duration of 150 days. 3. Unlike IEEPA, Section 122 of the Trade Act of 1974 requires the President to first declare a national emergency before it can be invoked. Which of the statements given above is/are correct?

1. The International Emergency Economic Powers Act (IEEPA), enacted in 1977, replaced the Trading with the Enemy Act of 1917 as the principal peacetime statute for Presidentially-declared economic emergencies.
2. Section 122 of the Trade Act of 1974 caps any Presidential import surcharge at 15% ad valorem and at a duration of 150 days.
3. Unlike IEEPA, Section 122 of the Trade Act of 1974 requires the President to first declare a national emergency before it can be invoked.

• A. 1 and 2 only
• B. 2 and 3 only
• C. 1 and 3 only
• D. 1, 2 and 3

Q3. In the context of the 2026 U.S. Supreme Court ruling on IEEPA tariffs, the 'Major Questions Doctrine' invoked by the Chief Justice is best defined as the principle that:

• A. Any executive action of vast economic or political significance must rest on a clear congressional authorization.
• B. All questions touching the conduct of foreign affairs are non-justiciable political questions exclusively for the Executive.
• C. International trade agreements must invariably be ratified by a two-thirds majority of the U.S. Senate before they take effect.
• D. A tariff measure may always be sustained if it is supported by a Presidential finding of a national emergency.

Q4. Following the February 2026 Supreme Court ruling that struck down IEEPA-based tariffs, the U.S. administration has been examining alternative statutory authorities for imposing tariffs. Consider the following: 1. Section 232 of the Trade Expansion Act, 1962 — permits tariffs on imports that threaten U.S. national security. 2. Section 301 of the Trade Act, 1974 — permits action against unfair trade practices of foreign countries. 3. Section 122 of the Trade Act, 1974 — permits a temporary import surcharge to address balance-of-payments problems. 4. Section 5(b) of the Trading with the Enemy Act, 1917 — remains the principal peacetime statutory authority for Presidential tariff action. Which of the statements given above is/are NOT correct?

1. Section 232 of the Trade Expansion Act, 1962 — permits tariffs on imports that threaten U.S. national security.
2. Section 301 of the Trade Act, 1974 — permits action against unfair trade practices of foreign countries.
3. Section 122 of the Trade Act, 1974 — permits a temporary import surcharge to address balance-of-payments problems.
4. Section 5(b) of the Trading with the Enemy Act, 1917 — remains the principal peacetime statutory authority for Presidential tariff action.

• A. 1 and 3
• B. 2 and 4
• C. 4 only
• D. 1, 2 and 4

Q5. Which one of the following U.S. federal agencies is the operational authority that collects import duties at U.S. ports of entry and will therefore be responsible for processing refunds of the duties paid under the IEEPA tariffs struck down by the Supreme Court in February 2026?

• A. U.S. Customs and Border Protection (CBP), Department of Homeland Security
• B. Office of the United States Trade Representative (USTR), Executive Office of the President
• C. International Trade Administration, Department of Commerce
• D. Bureau of Industry and Security, Department of Commerce