UPSC Prelims Practice Questions — Where does the India-U.S. trade deal stand?

Q1. With reference to the framework of the India-U.S. Interim Trade Agreement announced in February 2026, consider the following statements: Which of the statements given above is/are correct?

  1. The framework was announced on February 6, 2026.
  2. Under the framework, the U.S. lowered its reciprocal tariff on India from 25% to 10%.
  3. India committed to eliminate or reduce tariffs on a wide range of U.S. industrial goods and agricultural products.
  4. The Bilateral Trade Agreement negotiations were formally launched by President Trump and Prime Minister Modi on February 13, 2025.
  • A. 1, 2 and 3
  • B. 1, 3 and 4
  • C. 2 and 4 only
  • D. 1, 2, 3 and 4

Q2. In the context of recent India-U.S. trade developments, the abbreviation 'IEEPA', under which the U.S. President had imposed reciprocal tariffs on India, refers to which one of the following?

  • A. International Emergency Economic Powers Act, 1977
  • B. Inter-State Equitable Economic Protection Act, 1962
  • C. International Export Embargo and Penalty Act, 1974
  • D. International Economic Equity and Procurement Authorization, 1980

Q3. Consider the following statements comparing the U.S. tariff regime on Indian goods before and after February 2026: Which of the statements given above is/are correct?

  1. Prior to the Feb 6, 2026 framework, the combined U.S. tariff burden on Indian goods was approximately 50%, comprising a 25% reciprocal tariff and an additional 25% tariff linked to India's purchase of Russian oil.
  2. After the Feb 6, 2026 framework, the additional 25% 'Russian-oil' tariff was removed and the reciprocal tariff was reduced from 25% to 18%.
  3. Following the U.S. Supreme Court's ruling of Feb 20, 2026, the struck-down IEEPA tariffs were replaced by a 10% surcharge imposed under Section 232 of the Trade Expansion Act, 1962.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q4. With reference to the India-U.S. Interim Trade Agreement framework announced on February 6, 2026, consider the following statements: Which of the above is/are NOT correct?

  1. The total combined U.S. tariff burden on Indian goods prior to the framework stood at approximately 50%.
  2. The framework reduced the U.S. reciprocal tariff on India from 25% to 18%.
  3. The additional 25% 'Russian-oil' tariff on India was removed by a U.S. Executive Order accompanying the framework.
  4. The framework eliminated the U.S. Section 232 national-security tariffs on Indian steel and aluminium.
  • A. 1 only
  • B. 3 and 4
  • C. 4 only
  • D. 2 and 4

Q5. The 10% 'temporary import surcharge' applied by the U.S. on imports from all countries, effective February 24, 2026 — following the U.S. Supreme Court's ruling against IEEPA-based tariffs — was issued under which one of the following authorities?

  • A. Section 122 of the Trade Act of 1974
  • B. Section 232 of the Trade Expansion Act, 1962
  • C. Section 301 of the Trade Act of 1974
  • D. International Emergency Economic Powers Act, 1977
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