UPSC Prelims Practice Questions — China, U.S. agree to cut tariff, launch AI dialogue

Question 1

Consider the following statements regarding the US–China eight-point consensus of September 2026:
1. It provides for extending the outcomes of an earlier round of US–China economic talks held in Kuala Lumpur.
2. Its $30-billion tariff arrangement is a one-sided US cut on Chinese goods, with no matching reduction by China.
3. It was first announced publicly by China's Ministry of Commerce.
Which of the statements given above is/are correct?

Accepted Answer

1 only

Answer

1 and 2 only

Answer

2 and 3 only

Answer

1, 2 and 3

Question 2

Under the US Section 301 action against China, additional duties on the second list of Chinese goods (worth about USD 200 billion a year) were first imposed in September 2018 and raised in May 2019. By how many percentage points was the duty raised?

Accepted Answer

15

Answer

10

Answer

20

Answer

25

Question 3

With reference to the agencies that operate US trade-remedy laws, which one of the following statements is correct?

Accepted Answer

Section 301 permits country-specific retaliation after an inquiry conducted by the Office of the US Trade Representative.

Answer

Section 232 tariffs are imposed only after an inquiry by the US Trade Representative, and never by any other department.

Answer

Section 301 tariffs are always product-specific and are imposed exclusively after a Commerce Department investigation.

Answer

All US safeguard-type tariffs, including the 2018 Section 232 steel levies, are imposed under Section 201.

Question 4

According to the WTO, at the time of the 14th Ministerial Conference (March 2026), how many WTO members were party to the Multi-Party Interim Appeal Arbitration Arrangement (MPIA)?

Accepted Answer

61

Answer

18

Answer

36

Answer

47

Question 5

Which one of the following was the first summit in the global AI summit series to be held in the Global South?

Accepted Answer

AI Impact Summit held in New Delhi, India

Answer

AI Safety Summit held at Bletchley Park, United Kingdom

Answer

AI Action Summit held in Paris, co-chaired by India with France

Answer

AI Seoul Summit held in the Republic of Korea

Question 6

China overtook the United States as India's largest trading partner in 2025-26. Before that, for how many consecutive years up to 2024-25 had the US held this position?

Accepted Answer

Four

Answer

Two

Answer

Three

Answer

Five

UPSC Prelims Practice Questions — China, U.S. agree to cut tariff, launch AI dialogue

Q2. Under the US Section 301 action against China, additional duties on the second list of Chinese goods (worth about USD 200 billion a year) were first imposed in September 2018 and raised in May 2019. By how many percentage points was the duty raised?

Q3. With reference to the agencies that operate US trade-remedy laws, which one of the following statements is correct?

Q4. According to the WTO, at the time of the 14th Ministerial Conference (March 2026), how many WTO members were party to the Multi-Party Interim Appeal Arbitration Arrangement (MPIA)?

Q5. Which one of the following was the first summit in the global AI summit series to be held in the Global South?

Q6. China overtook the United States as India's largest trading partner in 2025-26. Before that, for how many consecutive years up to 2024-25 had the US held this position?