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Economics · 2026 · 3 marks
CBSE 2026 · Region 3 · Set 1 · Q12
“US administration has recently imposed tariff to the magnitude of 50%.” In the light of given statement, explain the likely impact of this step on…
“US administration has recently imposed tariff to the magnitude of $\displaystyle 50$%.”In the light of given statement, explain the likely impact of this step on the exports of India.
Marking-scheme solution
The imposition of high tariffs to the magnitude of $\displaystyle 50$% by the US administration, would make Indian goods relatively expensive in the international markets. Thereby, demand for Indian goods in the global market may fall leading to reduction in exports of India.
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CBSE Class 12 Economics past-paper question from the 2026 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.