1–10: Basic Understanding of the New Tariff Policy
1. In March 2025, what did the U.S. announce related to Pakistan’s imports?
A) Free trade deal
B) Export ban
C) New tariff policy
D) Visa restrictions
Correct Answer: C) New tariff policy
2. Which U.S. President introduced the new tariff policy in 2025?
A) Joe Biden
B) Barack Obama
C) Donald Trump
D) George W. Bush
Correct Answer: C) Donald Trump
3. What is the main purpose of imposing tariffs?
A) Promote tourism
B) Raise government salaries
C) Protect domestic industries
D) Support foreign economies
Correct Answer: C) Protect domestic industries
4. What percentage of tariff was reportedly imposed on select imports from Pakistan?
A) 5%
B) 10%
C) 25%
D) 50%
Correct Answer: D) 50%
5. Tariffs affect which type of business the most?
A) Restaurants
B) Import/export businesses
C) Real estate
D) Tourism companies
Correct Answer: B) Import/export businesses
6. What kind of goods are usually affected by tariffs?
A) Local groceries
B) Imported products
C) Services
D) Public infrastructure
Correct Answer: B) Imported products
7. Which sector of Pakistan’s economy could be most affected by U.S. tariffs?
A) Agriculture
B) Textile and garments
C) Tourism
D) Media
Correct Answer: B) Textile and garments
8. A tariff is essentially a type of what?
A) License
B) Loan
C) Tax
D) Gift
Correct Answer: C) Tax
9. What does the U.S. hope to encourage by imposing tariffs?
A) More Pakistani exports
B) More imports from Asia
C) More American-made goods
D) Free trade zones
Correct Answer: C) More American-made goods
10. Which Pakistani export is likely to be affected by the new tariffs?
A) Crude oil
B) Automobiles
C) Textiles and leather goods
D) Mobile apps
Correct Answer: C) Textiles and leather goods 11–20: Trade and Economic Impact
11. What might happen to the price of Pakistani goods in the U.S. due to tariffs?
A) Decrease
B) Stay the same
C) Increase
D) Become free
Correct Answer: C) Increase
12. Why might American consumers buy fewer Pakistani products now?
A) Shipping delays
B) Higher costs due to tariffs
C) Lack of interest
D) COVID-19 issues
Correct Answer: B) Higher costs due to tariffs
13. What is a common effect of tariffs on global trade?
A) More jobs worldwide
B) Increased exports
C) Trade tensions and price hikes
D) Lower inflation
Correct Answer: C) Trade tensions and price hikes
14. What might Pakistan do in response to high tariffs?
A) End all exports
B) Offer free goods
C) Look for new trading partners
D) Reduce quality
Correct Answer: C) Look for new trading partners
15. Which international organization oversees global trade rules?
A) IMF
B) UN
C) WTO
D) WHO
Correct Answer: C) WTO
16. What is the U.S. trying to reduce through tariffs on imports?
A) Foreign aid
B) Unemployment
C) Trade deficit
D) Gas prices
Correct Answer: C) Trade deficit
17. What are tariffs often part of?
A) Trade agreements
B) Educational reforms
C) Military operations
D) Climate change plans
Correct Answer: A) Trade agreements
18. In trade terms, what does “export” mean?
A) Bring in goods
B) Sell goods to other countries
C) Buy local goods
D) Ban items
Correct Answer: B) Sell goods to other countries
19. Why is the textile industry crucial for Pakistan?
A) It grows rice
B) It employs a large workforce and boosts exports
C) It builds houses
D) It offers free education
Correct Answer: B) It employs a large workforce and boosts exports
20. Which country is Pakistan’s top export destination?
A) China
B) U.K.
C) United States
D) Japan
Correct Answer: C) United States
🔹 MCQs 21–30: Political and Strategic Aspects
21. What could be a long-term result of trade barriers?
A) Stronger alliances
B) Diplomatic tension
C) Free travel
D) Easier visas
Correct Answer: B) Diplomatic tension
22. How can tariffs affect small businesses in Pakistan?
A) Help them expand globally
B) Lower their product costs
C) Limit their access to international markets
D) Increase social media followers
Correct Answer: C) Limit their access to international markets
23. What role can trade diplomacy play in such situations?
A) Spread news
B) Reduce customs duties
C) Resolve disputes and negotiate tariffs
D) Organize elections
Correct Answer: C) Resolve disputes and negotiate tariffs
24. What might the U.S. demand in exchange for reducing tariffs?
A) More tourism from Pakistan
B) Political favors
C) Strategic or economic reforms
D) Free education for Americans
Correct Answer: C) Strategic or economic reforms
25. What happens to trade when tariffs are too high?
A) Trade increases
B) Trade shifts to other countries
C) Trade becomes faster
D) Trade gets automated
Correct Answer: B) Trade shifts to other countries
26. What is Pakistan’s trade deficit?
A) The number of lost jobs
B) When imports are more than exports
C) A type of loan
D) Cost of visas
Correct Answer: B) When imports are more than exports
27. Which sector is NOT directly affected by tariffs?
A) Manufacturing
B) Export services
C) Construction
D) Import/export
Correct Answer: C) Construction
28. What can the Pakistani government do to reduce impact?
A) Ignore the U.S. market
B) Improve product quality and diversify exports
C) Close its borders
D) Increase tariffs on local goods
Correct Answer: B) Improve product quality and diversify exports
29. How can local Pakistani industries survive the tariff hike?
A) Reduce salaries
B) Stop exporting
C) Explore Asian and African markets
D) Rely only on U.S. buyers
Correct Answer: C) Explore Asian and African markets
30. What is one benefit of high tariffs for the U.S.?
A) Increased dependency on imports
B) Slower economy
C) Growth of local industries
D) Higher unemployment
Correct Answer: C) Growth of local industries