UPSC Prelims Practice Questions — U.S. moots 12.5% tariff on India for failure to enforce ‘forced labour’ regulations

Q1. As per the United States Trade Representative's June 2026 findings under the Section 301 forced-labour investigations, how many economies were covered by the proposed additional tariff action?

  • A. 46
  • B. 54
  • C. 60
  • D. 72

Q2. With reference to the statutory and treaty framework on forced labour invoked in the recent U.S.–India trade dispute, consider the following: 1. The ILO Forced Labour Convention (No. 29) was adopted in 1930. 2. India ratified the ILO Abolition of Forced Labour Convention (No. 105) in 2000. 3. The Bonded Labour System (Abolition) Act in India was enacted in 1976. 4. The Uyghur Forced Labor Prevention Act of the United States was enacted in 2020. Which of the above is/are correctly identified?

  1. The ILO Forced Labour Convention (No. 29) was adopted in 1930.
  2. India ratified the ILO Abolition of Forced Labour Convention (No. 105) in 2000.
  3. The Bonded Labour System (Abolition) Act in India was enacted in 1976.
  4. The Uyghur Forced Labor Prevention Act of the United States was enacted in 2020.
  • A. 1, 2 and 3 only
  • B. 2 and 4 only
  • C. 1 and 3 only
  • D. 1, 2, 3 and 4

Q3. Consider the following statements comparing the U.S. administration's earlier 'reciprocal tariffs' regime with the June 2026 Section 301 forced-labour tariff proposal: 1. The earlier 'reciprocal tariffs' imposed rates of 26%/50% on India, whereas the Section 301 forced-labour proposal sets the rate on India at 12.5%. 2. Both the 'reciprocal tariffs' and the Section 301 forced-labour tariffs were upheld by the U.S. Supreme Court. 3. Under the Section 301 forced-labour proposal, economies that impose a forced-labour import prohibition face a lower 10% additional duty, while those that do not face 12.5%. Which of the statements given above is/are correct?

  1. The earlier 'reciprocal tariffs' imposed rates of 26%/50% on India, whereas the Section 301 forced-labour proposal sets the rate on India at 12.5%.
  2. Both the 'reciprocal tariffs' and the Section 301 forced-labour tariffs were upheld by the U.S. Supreme Court.
  3. Under the Section 301 forced-labour proposal, economies that impose a forced-labour import prohibition face a lower 10% additional duty, while those that do not face 12.5%.
  • A. 1 only
  • B. 1 and 2 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q4. The proposed 12.5% additional tariff on Indian imports by the United States Trade Representative in June 2026 has been mooted exclusively under which one of the following statutory authorities?

  • A. Section 301 of the U.S. Trade Act, 1974
  • B. Section 307 of the U.S. Tariff Act, 1930
  • C. The Uyghur Forced Labor Prevention Act, 2022
  • D. Section 232 of the U.S. Trade Expansion Act, 1962