UPSC Prelims Practice Questions — U.S. team to visit India in June to finalise interim pact details

Q1. The India–U.S. Interim Trade Agreement and the broader Bilateral Trade Agreement (BTA) negotiations are conducted on the Indian side by which one of the following?

  • A. Ministry of Commerce and Industry
  • B. Ministry of External Affairs
  • C. Ministry of Finance
  • D. Ministry of Corporate Affairs

Q2. With reference to the India–U.S. Interim Trade Agreement and the Bilateral Trade Agreement (BTA), consider the following statements: 1. The Interim Agreement is envisaged as a stepping-stone deal preceding the comprehensive BTA, arising from the framework set out in the Joint Statement of 7 February 2026. 2. The broader BTA negotiations were launched earlier than the interim framework, by the U.S. President and the Indian Prime Minister in February 2025. 3. The BTA is confined to a single sector, namely agricultural goods, whereas the Interim Agreement is the multi-sector arrangement. Which of the statements given above is/are correct?

  1. The Interim Agreement is envisaged as a stepping-stone deal preceding the comprehensive BTA, arising from the framework set out in the Joint Statement of 7 February 2026.
  2. The broader BTA negotiations were launched earlier than the interim framework, by the U.S. President and the Indian Prime Minister in February 2025.
  3. The BTA is confined to a single sector, namely agricultural goods, whereas the Interim Agreement is the multi-sector arrangement.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q3. As per contemporaneous reporting, the combined U.S. duty on Indian goods — the reciprocal tariff together with the penalty linked to Russian oil purchases — rose to as high as which one of the following?

  • A. 18%
  • B. 25%
  • C. 43%
  • D. 50%

Q4. Although the U.S. reciprocal tariffs were imposed by presidential action, the assessment and collection of such import duties at the border is the responsibility of which one of the following U.S. bodies?

  • A. U.S. Customs and Border Protection
  • B. Office of the United States Trade Representative
  • C. U.S. Department of the Treasury
  • D. U.S. International Trade Commission

Q5. With reference to the principals associated with the India–U.S. BTA negotiations, consider the following pairings of person and office: 1. Jamieson Greer — U.S. Trade Representative 2. Piyush Goyal — Union Minister of Commerce and Industry 3. Nirmala Sitharaman — Union Minister of Finance 4. S. Jaishankar — Union Minister of Commerce and Industry Which of the pairings given above is/are NOT correctly matched?

  1. Jamieson Greer — U.S. Trade Representative
  2. Piyush Goyal — Union Minister of Commerce and Industry
  3. Nirmala Sitharaman — Union Minister of Finance
  4. S. Jaishankar — Union Minister of Commerce and Industry
  • A. 1 and 2
  • B. 2 and 3
  • C. 3 only
  • D. 4 only

Q6. The India–U.S. Bilateral Trade Agreement negotiations were formally launched in February 2025 under the leadership of Prime Minister Narendra Modi and which one of the following U.S. Presidents?

  • A. Donald Trump
  • B. Joe Biden
  • C. Barack Obama
  • D. Kamala Harris

Q7. Under the 'Mission 500' goal announced alongside the launch of the BTA, the two countries set a target to raise total bilateral trade to which one of the following figures by 2030?

  • A. USD 200 billion
  • B. USD 300 billion
  • C. USD 500 billion
  • D. USD 1 trillion

Q8. With reference to the U.S. Supreme Court's February 2026 ruling on tariffs imposed under the International Emergency Economic Powers Act (IEEPA), consider the following statements: 1. The Court held that IEEPA does not authorise the President to impose tariffs. 2. The Court reasoned that the power to levy tariffs is a branch of the taxing power vested in Congress under Article I of the U.S. Constitution. 3. The opinion was authored by the Chief Justice of the United States. 4. The Court held that tariffs of every kind are henceforth permanently barred, regardless of the statute invoked. Which of the statements given above is/are correctly identified?

  1. The Court held that IEEPA does not authorise the President to impose tariffs.
  2. The Court reasoned that the power to levy tariffs is a branch of the taxing power vested in Congress under Article I of the U.S. Constitution.
  3. The opinion was authored by the Chief Justice of the United States.
  4. The Court held that tariffs of every kind are henceforth permanently barred, regardless of the statute invoked.
  • A. 1 and 4 only
  • B. 2 and 3 only
  • C. 1, 2 and 3
  • D. 1, 2, 3 and 4

Q9. With reference to the U.S. Supreme Court's February 2026 IEEPA tariff ruling, consider the following statements: 1. It invalidated the tariffs on imports from Canada, Mexico and China that were based on a declared emergency concerning illicit drugs. 2. It invalidated the reciprocal tariffs based on a declared emergency concerning the U.S. trade deficit. 3. It affirmed an earlier decision of the U.S. Court of Appeals for the Federal Circuit. 4. It held that IEEPA-based tariffs could never be reviewed by any court under any circumstances. Which of the statements given above is/are NOT correct?

  1. It invalidated the tariffs on imports from Canada, Mexico and China that were based on a declared emergency concerning illicit drugs.
  2. It invalidated the reciprocal tariffs based on a declared emergency concerning the U.S. trade deficit.
  3. It affirmed an earlier decision of the U.S. Court of Appeals for the Federal Circuit.
  4. It held that IEEPA-based tariffs could never be reviewed by any court under any circumstances.
  • A. 1 and 2
  • B. 3 only
  • C. 4 only
  • D. 2 and 4

Q10. The Office of the United States Trade Representative (USTR) is best described as which one of the following?

  • A. An agency within the Executive Office of the President, headed by a Cabinet-level official with the rank of Ambassador who serves as the chief U.S. trade negotiator
  • B. A bureau within the U.S. Department of Commerce responsible primarily for export promotion and trade fairs
  • C. An independent regulatory commission that adjudicates disputes and imposes anti-dumping duties
  • D. A division of the U.S. Department of State that conducts economic diplomacy on the President's behalf

Q11. With reference to India's response at the WTO to U.S. tariffs on steel and aluminium in 2025, consider the following statements: 1. India notified the WTO's Council for Trade in Goods of its intent to suspend concessions equivalent to the trade impact of the U.S. tariffs. 2. Although the U.S. justified the measures on national-security grounds, India treated them as safeguard measures inconsistent with the GATT 1994 and the Agreement on Safeguards. 3. India's proposed retaliation was deliberately designed to exceed entirely the value of the U.S. duties, abandoning any principle of equivalence. Which of the statements given above is/are correct?

  1. India notified the WTO's Council for Trade in Goods of its intent to suspend concessions equivalent to the trade impact of the U.S. tariffs.
  2. Although the U.S. justified the measures on national-security grounds, India treated them as safeguard measures inconsistent with the GATT 1994 and the Agreement on Safeguards.
  3. India's proposed retaliation was deliberately designed to exceed entirely the value of the U.S. duties, abandoning any principle of equivalence.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3