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Daily Current Affairs
8 & 9 August, 2025
1. On which date will the 25% U.S. import tariff on eligible Indian goods come into effect?
A. July 25, 2025
B. July 30, 2025
C. August 1, 2025
D. August 15, 2025
E. September 1, 2025
Answer: C. August 1, 2025
Explanation: The U.S. President announced a 25% tariff on Indian imports on July 30, 2025, to be implemented from August 1, 2025, under the Russia Sanctions Act 2025 context.
2. The recently announced U.S. import tariff on Indian goods is linked to which proposed law?
A. Global Trade Security Act
B. Russia Sanctions Act 2025
C. Indo-Pacific Trade Policy Act
D. America First Trade Act
E. Energy Relations Act 2025
Answer: B. Russia Sanctions Act 2025
Explanation: The 25% import tariff on Indian goods is associated with the proposed Russia Sanctions Act 2025, due to India’s continued trade and defence relations with Russia.
3. Which of the following reasons was cited by the U.S. for imposing tariffs on Indian imports?
A. India’s agricultural subsidies
B. High trade barriers and energy ties with Russia
C. Intellectual property disputes
D. Human rights concerns
E. Currency manipulation
Answer: B. High trade barriers and energy ties with Russia
Explanation: The U.S. cited India’s high trade barriers and continued energy and defence relations with Russia as the main reasons for imposing the tariffs.
4. Who announced the 25% U.S. import tariff on Indian goods?
A. U.S. Trade Representative
B. Secretary of State
C. U.S. President
D. Senate Majority Leader
E. Commerce Secretary
Answer: C. U.S. President
Explanation: The U.S. President officially announced the 25% import tariff on Indian goods on July 30, 2025.
5. Which sector is most likely to be directly impacted by the U.S. tariff on Indian imports?
A. IT Services
B. Export-oriented manufacturing
C. Tourism
D. Agriculture only
E. Real estate
Answer: B. Export-oriented manufacturing
Explanation: The tariff targets imported goods from India, which directly affects export-oriented manufacturing sectors.
6. Tariffs are considered which type of economic measure?
A. Monetary policy
B. Fiscal policy
C. Trade policy
D. Foreign policy
E. Agricultural subsidy
Answer: C. Trade policy
Explanation: Tariffs are part of trade policy, used by governments to regulate imports and protect domestic industries.
7. If Indian exports to the U.S. decline due to tariffs, it may lead to which macroeconomic effect?
A. Increase in foreign exchange reserves
B. Depreciation of the Indian rupee
C. Decline in inflation
D. Surge in GDP
E. Rise in trade surplus
Answer: B. Depreciation of the Indian rupee
Explanation: Reduced export earnings mean fewer U.S. dollars entering India, which can weaken the rupee against the dollar.
8. Which Indian export sector is historically sensitive to U.S. tariff changes?
A. Pharmaceuticals
B. Textiles and apparel
C. Heavy machinery
D. Coal mining
E. Fertilizers
Answer: B. Textiles and apparel
Explanation: Textiles and apparel are among India’s major exports to the U.S., making them sensitive to tariff changes.
9. An increase in tariffs generally aims to:
A. Encourage imports
B. Protect domestic industries
C. Reduce domestic production
D. Lower inflation
E. Increase foreign direct investment
Answer: B. Protect domestic industries
Explanation: By making imported goods more expensive, tariffs aim to give domestic producers a competitive advantage.
10. Which agricultural products from India could be affected by the 25% U.S. import tariff?
A. Only rice
B. Only wheat
C. Spices, rice, and tea
D. Only cotton
E. Only sugar
Answer: C. Spices, rice, and tea
Explanation: India exports a variety of agricultural goods, including spices, rice, and tea, to the U.S., which could face reduced competitiveness due to tariffs.
