UPSC Prelims Practice Questions — U.S. imposes permanent tariffs; India stays at 10%

Q1. In US trade law, 'Section 301' — the authority invoked for the 2026 forced-labour tariffs on 60 economies — refers to which one of the following?

  • A. A provision of the US Trade Act of 1974 empowering the US Trade Representative to investigate and retaliate against unjustifiable, unreasonable or discriminatory foreign trade practices
  • B. A provision of the US Trade Expansion Act of 1962 empowering the President to restrict imports found to threaten national security
  • C. A provision of the US Tariff Act of 1930 authorising the exclusion of imports that infringe US intellectual-property rights
  • D. A provision of the US Trade Act of 1974 authorising temporary safeguard duties when a domestic industry suffers serious injury from an import surge

Q2. Under the final Section 301 forced-labour action effective 24 July 2026, consider the following economies: 1. United Kingdom 2. China 3. Canada 4. Brazil Which of the above were placed in the lower 10% (rather than 12.5%) Section 301 tariff slab? Which of the above is/are correctly identified?

  1. United Kingdom
  2. China
  3. Canada
  4. Brazil
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 1, 3 and 4 only
  • D. 1 and 2 only

Q3. Under the final Section 301 forced-labour action of July 2026, how many of the investigated economies were placed in the lower flat 10% tariff slab (the slab that India retained)?

  • A. 17
  • B. 38
  • C. 55
  • D. 60

Q4. An investigated economy was assigned the lower 10% (rather than 12.5%) Section 301 rate if it satisfied which one of the following conditions?

  • A. It imposes, has committed to impose and enforce, or maintains a partial regime prohibiting the import of forced-labour goods
  • B. It maintains a most-favoured-nation tariff of below 5% on all US-origin goods
  • C. It has concluded a comprehensive free-trade agreement with the United States
  • D. It was granted an exemption under the US Section 232 national-security tariffs

Q5. Roughly 70% of India's merchandise exports now attract the additional 10% Section 301 duty over the applicable MFN rate. At the US border these duties are assessed and collected by —

  • A. US Customs and Border Protection, under the Department of Homeland Security
  • B. The Office of the US Trade Representative, within the Executive Office of the President
  • C. The US International Trade Commission, an independent federal agency
  • D. The Bureau of Industry and Security, under the Department of Commerce

Q6. For which one of the following Indian export sectors is the United States regarded as the single-largest overseas market, leaving it particularly exposed to the new Section 301 duty?

  • A. Textiles and apparel
  • B. Basmati rice
  • C. Marine products
  • D. Iron ore

Q7. Under the Section 301 forced-labour action, special tariff-rate quotas for textiles and apparel (tied to imports of US cotton and textile inputs, for an initial three-year period) were granted to certain economies. Consider the following: 1. India 2. Cambodia 3. Sri Lanka 4. Malaysia Which of the above is/are correctly identified as a recipient of such a tariff-rate quota?

  1. India
  2. Cambodia
  3. Sri Lanka
  4. Malaysia
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 2, 3 and 4 only
  • D. 1 and 4 only

Q8. The new Section 301 forced-labour duty on Indian goods does not replace existing duties; it is levied on top of an underlying layer. Which one of the following forms the base duty over which the 10% Section 301 rate is stacked?

  • A. The item-wise Most-Favoured-Nation (MFN) tariff
  • B. The anti-dumping duty determined by the US Department of Commerce
  • C. The countervailing duty on subsidised imports
  • D. The Section 232 national-security tariff on steel and aluminium

Q9. Within the US executive branch, the official who heads the Office of the US Trade Representative and led the 2026 Section 301 action holds which one of the following ranks?

  • A. Ambassador Extraordinary and Plenipotentiary, with Cabinet rank
  • B. Under Secretary of Commerce for International Trade
  • C. Special Presidential Envoy for Trade, without Cabinet rank
  • D. Assistant to the President for Economic Policy

Q10. Consider the following statements about the leadership of the Office of the US Trade Representative (USTR): 1. Jamieson Greer is the 20th USTR and succeeded Katherine Tai, who had served under President Biden. 2. Unlike the Secretary of Commerce, the USTR heads an agency located within the Executive Office of the President. 3. Before becoming USTR, Jamieson Greer served as Chief of Staff to the then USTR Katherine Tai. Which of the statements given above is/are correct?

  1. Jamieson Greer is the 20th USTR and succeeded Katherine Tai, who had served under President Biden.
  2. Unlike the Secretary of Commerce, the USTR heads an agency located within the Executive Office of the President.
  3. Before becoming USTR, Jamieson Greer served as Chief of Staff to the then USTR Katherine Tai.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q11. Consider the following statements comparing legal regimes on trade in forced-labour goods: 1. Section 307 of the US Tariff Act of 1930 has prohibited the import of goods made wholly or in part with forced labour since 1930. 2. The Uyghur Forced Labor Prevention Act of 2021 applies a rebuttable presumption of forced labour to goods linked to China's Xinjiang region. 3. The World Trade Organization's agreements contain an explicit and binding provision that prohibits all trade in forced-labour goods among its members. Which of the statements given above is/are correct?

  1. Section 307 of the US Tariff Act of 1930 has prohibited the import of goods made wholly or in part with forced labour since 1930.
  2. The Uyghur Forced Labor Prevention Act of 2021 applies a rebuttable presumption of forced labour to goods linked to China's Xinjiang region.
  3. The World Trade Organization's agreements contain an explicit and binding provision that prohibits all trade in forced-labour goods among its members.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q12. In the India-US tariff timeline, the initial 10% across-the-board US import surcharge (imposed in February 2026 and lapsing on 24 July 2026) was levied under 'Section 122' of the Trade Act of 1974. This provision refers to —

  • A. A temporary balance-of-payments authority permitting an import surcharge for a maximum of 150 days unless extended by Congress
  • B. A permanent tariff authority allowing unlimited duties on all imports for as long as a US trade deficit persists
  • C. An authority to impose tariffs on all imports indefinitely on grounds of national security
  • D. A provision requiring the President to match, without exception, the exact tariff every trading partner levies on US goods