UPSC Prelims Practice Questions — Trump’s 10% tariff ‘invalid’, rules U.S. trade court
Q1. Under Section 122 of the U.S. Trade Act, 1974 — invoked by President Trump in February 2026 — what is the maximum duration (in days) for which a temporary import surcharge may remain in force without an extension by an Act of Congress?
- A. 90 days
- B. 120 days
- C. 150 days
- D. 180 days
Q2. The 10% universal import tariff that was struck down by the U.S. Court of International Trade in May 2026 had been imposed by President Trump under the authority of which one of the following U.S. statutes?
- A. International Emergency Economic Powers Act, 1977
- B. Section 232 of the Trade Expansion Act, 1962
- C. Section 122 of the Trade Act, 1974
- D. Section 301 of the Trade Act, 1974
Q3. Which one of the following is the United States federal forum that, in a 2-1 decision in May 2026, ruled President Trump's 10% Section 122 tariff to be 'unauthorised by law'?
- A. U.S. Court of Appeals for the Federal Circuit
- B. U.S. District Court for the District of Columbia
- C. U.S. Court of International Trade
- D. U.S. Supreme Court
Q4. In the context of Section 122 of the U.S. Trade Act, 1974 — the provision invoked for the 10% tariff struck down by the CIT in May 2026 — which of the following best describes a 'balance-of-payments deficit'?
- A. The excess of a country's merchandise imports over its merchandise exports alone
- B. The net deficit in a country's overall international transactions, covering both the current and capital accounts, that threatens external stability
- C. The excess of a government's total expenditure over its revenue, financed through external borrowing
- D. A shortfall in a country's foreign exchange reserves below a statutorily prescribed minimum