How will Trump's tariffs hit MENA economies?

Donald Trump’s new wave of global tariffs, including a 25% charge on imported cars, steel, and aluminium, may target China and the EU, but many MENA countries are caught in the crossfire.

While countries like Egypt, Saudi Arabia, and the UAE face a 10% baseline rate, others have been hit much harder: Syria (41%), Iraq (39%), Algeria (30%), and Tunisia (28%).

For key exporters like Egypt and Jordan, the impact could be severe. Egypt’s garment industry, worth over $1.1bn in US exports last year, faces shrinking demand and potential job losses. Jordan, exporting nearly $1.7bn in garments, risks similar blows to its workforce.

Oil exporters including Iraq, Saudi Arabia, and Kuwait could suffer from falling global demand and energy prices, putting pressure on public spending and infrastructure plans. Meanwhile, North African nations such as Tunisia and Morocco — reliant on imported goods — may see inflation surge due to disrupted supply chains.

Egypt, already the world’s largest wheat importer, faces the threat of rising food prices and social unrest. From currency instability to rising costs, the ripple effects of Trump’s tariffs could destabilise already fragile economies across the MENA region.