In a significant shift in U.S. trade policy, President Donald Trump announced that starting April 5, 2025, imports from Egypt, Saudi Arabia, and the UAE will be subject to a 10% tariff. This is part of a broader strategy to address perceived unfair trade practices. A second round of tariff increases is expected soon, with countries like Syria, Iraq, Libya, and Tunisia facing rates between 28% and 41%, and Jordan facing a 20% rate. While the Gulf Cooperation Council countries maintain a U.S. trade surplus, industries reliant on U.S. exports, such as manufacturing, oil, and consumer goods, are preparing for disruptions. The new tariffs pose diplomatic and economic challenges for Egypt and Saudi Arabia, both U.S. allies, raising concerns over supply chain delays and long-term impacts on regional trade. The decision could also shift regional alliances and accelerate diversification efforts in countries like the UAE and Saudi Arabia.
