Global Economy, Science & Technology 2026

1. World Trade and Tariffs in 2026

World trade in 2026 was shaped by US tariff policy, a major US court ruling, new free trade agreements, and disruption to oil shipping in the Gulf. These topics are often asked in banking and economy sections of exams.

The US tariff ruling

• In 2025, the US had imposed 'reciprocal' tariffs on many countries using the International Emergency Economic Powers Act (IEEPA).
• On 20 February 2026, the US Supreme Court ruled 6-3 that IEEPA does not give the President power to impose tariffs.
• Chief Justice John Roberts wrote the majority opinion.
• The US government then announced a temporary tariff on imports from all countries under Section 122 of the Trade Act of 1974, which allows such tariffs for up to 150 days.
• The tariff was first set at 10% from 24 February 2026, and the President later announced an increase to 15%, the maximum Section 122 allows.

New trade deals

• India and the EU concluded their FTA negotiations on 27 January 2026.
• India-UK CETA came into force on 15 July 2026, and India-Oman CEPA on 1 June 2026.
• India and New Zealand signed an FTA on 27 April 2026.
• Many countries looked for new trade partners to reduce dependence on any single market.

Energy and shipping

• The conflict involving Iran from February 2026 badly disrupted shipping through the Strait of Hormuz.
• A large share of the world's oil and liquefied natural gas (LNG) normally passes through this strait.
• In April 2026, the US announced a naval blockade of Iranian ports, and Iran placed restrictions on ships using the strait.
• Importing countries, including India, worked to secure energy supplies from other sources.

💡 Remember the numbers in this topic: 6-3 (court vote), 150 days and 15% (Section 122 limits), 18% (US tariff on India in the February framework).

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2. Artificial Intelligence: Summits and Rules

Artificial intelligence (AI) remained a top global topic in 2026. India hosted a major international AI summit, and the European Union changed the timeline of its AI law. These developments show how countries are trying to balance innovation with safety.

AI Impact Summit, New Delhi

• India hosted the India-AI Impact Summit at Bharat Mandapam, New Delhi, in February 2026 (main summit days 19-20 February).
• It was the first global AI summit of this series to be held in the Global South.
• Earlier summits in the series were held at Bletchley Park, UK (2023), Seoul, South Korea (2024) and Paris, France (2025).
• The summit was built around three 'Sutras' (guiding principles): People, Planet and Progress.
• It was organised under the IndiaAI Mission of the Ministry of Electronics and Information Technology (MeitY).

EU AI Act and the Digital Omnibus

• The EU AI Act, the world's first comprehensive AI law, entered into force on 1 August 2024 and applies in stages.
• In November 2025, the European Commission proposed a 'Digital Omnibus' package to simplify EU digital rules, including the AI Act.
• The resulting 'Digital Omnibus on AI' was agreed by EU lawmakers in 2026 and entered into force on 27 July 2026.
• It delays high-risk AI rules for uses such as hiring, education and biometrics to 2 December 2027, and for AI in regulated products to 2 August 2028.
• It also adds a ban on AI systems that create non-consensual intimate images or child sexual abuse material.
• The AI Act's transparency obligations apply from 2 August 2026.

💡 Remember the AI summit chain by city: Bletchley Park, Seoul, Paris, New Delhi. New Delhi was the first in the Global South.

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3. Space and Science Around the World

2026 saw humans travel around the Moon for the first time since 1972. Space agencies also launched new telescopes and rockets. This lesson covers the main world space missions of the year.

Artemis II: humans return to the Moon's neighbourhood

• NASA launched Artemis II on 1 April 2026 on the Space Launch System (SLS) rocket from Kennedy Space Center, Florida.
• It was the first crewed flight around the Moon since Apollo 17 in 1972.
• Crew: Reid Wiseman (commander), Victor Glover (pilot), Christina Koch (NASA) and Jeremy Hansen of the Canadian Space Agency.
• The crew named their Orion spacecraft 'Integrity'.
• The crew travelled about 4,06,771 km from Earth, breaking Apollo 13's record for the farthest humans have travelled.
• Orion splashed down in the Pacific Ocean off San Diego on 10 April 2026 (US time; 11 April UTC), after a mission of about 9 days.

Firsts on Artemis II

• Christina Koch became the first woman to travel around the Moon.
• Victor Glover became the first person of colour to travel around the Moon.
• Jeremy Hansen became the first non-American to travel around the Moon.

Other space news

• NASA's SpaceX Crew-11 mission returned from the International Space Station about a month early, on 15 January 2026, because of a crew member's medical condition; it was described as NASA's first medical evacuation from the station.
• NASA's Nancy Grace Roman Space Telescope was launched on 30 August 2026 on a SpaceX Falcon Heavy rocket from Kennedy Space Center, heading for an orbit around the Sun-Earth L2 point.
• The Roman telescope will study dark energy and search for exoplanets.
• The Roman telescope is named after Nancy Grace Roman, NASA's first chief of astronomy.

💡 For Artemis II, learn the four crew names and their 'firsts'. Exams often ask which crew member came from Canada.

📝 5-question quiz on this lesson: enrol free to take it and track your score.