Trump imposes new trade tariffs on Egypt

In a bold and controversial move, U.S. President Donald Trump has announced a new set of tariffs targeting key trading partners in the Arab world — including Egypt, Saudi Arabia, and the United Arab Emirates. The decision marks a sharp pivot in the U.S.'s trade strategy, one that is already rattling policymakers and markets across the Middle East.

Starting April 5, 2025, all imports from Egypt, the UAE, and Saudi Arabia will be subject to a 10% tariff. But the impact may not stop there. A second wave of rate hikes is expected just days later, with other nations across the region also facing steep increases. Countries like Syria, Iraq, Libya, and Tunisia are looking at tariffs between 28% and 41%, while Jordan, a long-time U.S. ally, will be hit with a 20% rate.

The White House framed the move as part of a broader initiative to reset global trade dynamics and push back against what it perceives as unfair trade practices. “It’s our declaration of independence in trade,” President Trump said during a press conference, signaling a more aggressive stance even toward nations historically aligned with Washington.

For countries like Egypt and Saudi Arabia, the announcement presents a puzzling challenge. Both nations have maintained strong diplomatic and security ties with the U.S., and have often been seen as reliable partners in regional stabilization and economic cooperation.

But with the new tariffs in place, industries across the region — especially those tied to manufacturing, oil-related goods, and consumer exports — are bracing for increased costs and logistical delays. Business leaders warn that the measures could disrupt supply chains and dampen investor confidence at a time when global markets are already under pressure from inflation and geopolitical volatility.

While the news is generating considerable concern, early analysis suggests the economic blow may not be as severe across the Gulf Cooperation Council (GCC) states. The U.S. maintains a trade surplus with the six GCC countries, meaning the financial sting may be less pronounced in the short term.

Nonetheless, certain sectors — particularly those reliant on U.S. exports of machinery, automotive parts, and consumer goods — could see indirect effects. Some companies are already considering shifting trade routes or adjusting pricing strategies to minimize disruption.

The long-term effects of these tariffs will depend on whether the targeted countries choose to retaliate, seek exemptions, or shift focus to alternative trade partners. Some regional economists suggest that this could accelerate ongoing diversification efforts, especially in countries like the UAE and Saudi Arabia, which have been actively reducing their dependence on Western markets.

Diplomatically, however, the announcement raises serious questions. Can strategic alliances endure when economic pressure becomes a negotiating tool? Will this move complicate cooperation on broader issues like energy security and regional stability?

As the dust settles, one thing is clear: the U.S.'s trade relationships with Arab partners are entering a new and uncertain phase — one that may reshape not just supply chains, but the very fabric of global economic alliances.