UPSC Prelims Practice Questions — Trump’s Section 301 weapon, lessons from the past

Q1. With reference to the two sets of Section 301 investigations initiated by the United States Trade Representative (USTR) in March 2026, consider the following statements: 1. The probe on "Structural Excess Capacity and Production in Manufacturing Sectors" covers 16 economies, while the parallel probe on failure to enforce a ban on forced-labour goods covers 60 economies. 2. India is listed as a target economy in the structural-excess-capacity probe but has been excluded from the forced-labour probe. 3. Both sets of investigations are being conducted under Section 301(b) of the US Trade Act of 1974. Which of the statements given above is/are correct?

  1. The probe on "Structural Excess Capacity and Production in Manufacturing Sectors" covers 16 economies, while the parallel probe on failure to enforce a ban on forced-labour goods covers 60 economies.
  2. India is listed as a target economy in the structural-excess-capacity probe but has been excluded from the forced-labour probe.
  3. Both sets of investigations are being conducted under Section 301(b) of the US Trade Act of 1974.
  • A. 1 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q2. Within the US federal government, the authority to initiate an investigation and to determine remedial action (including imposition of tariffs) under Section 301 of the Trade Act of 1974 is vested in which one of the following?

  • A. The Office of the United States Trade Representative (USTR)
  • B. The US Department of Commerce, Bureau of Industry and Security
  • C. The US International Trade Commission (USITC)
  • D. The US Customs and Border Protection (CBP)

Q3. In March 2026, how many trading-partner economies were named by the USTR in its Section 301 investigations into "Structural Excess Capacity and Production in Manufacturing Sectors"?

  • A. 10
  • B. 16
  • C. 24
  • D. 60

Q4. "Section 301", recently invoked by the Trump administration in 2026 against 16 economies including India, is a provision of which one of the following US statutes?

  • A. Trade Act of 1974
  • B. Omnibus Trade and Competitiveness Act of 1988
  • C. International Emergency Economic Powers Act (IEEPA), 1977
  • D. Tariff Act of 1930

Q5. In the Section 301 forced-labour investigations whose findings were announced in June 2026, the highest rate of additional ad valorem duty proposed by the USTR on the targeted economies is:

  • A. 5%
  • B. 10%
  • C. 12.5%
  • D. 25%
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