In a significant shift in US trade policy, US President Donald Trump has announced a 10% tariff on all imports from the UAE, and Saudi Arabia, effective April 5th, 2025, with higher rates coming into force on April 9th. This move is part of a broader strategy to impose tariffs on several major trading partners, including Oman, Bahrain, Qatar, and Morocco, all of which will face the same 10% tariff under the new policy.

The decision follows Trump’s announcement that higher reciprocal tariffs would be enforced on countries like China (34%) and the European Union (20%). The increased duties on Egypt, the UAE, and Saudi Arabia are a response to tariffs previously imposed on US goods and mark a key development in the ongoing trade tensions. "The 10% tariff on Egypt, the UAE, and Saudi Arabia reflects our commitment to fair trade practices and balanced agreements," Trump stated during the White House announcement. "It’s our declaration of independence in trade."

While Egypt, the UAE, and Saudi Arabia will face the 10% baseline tariff, other nations, such as Jordan, will see rates of up to 20%. Other Arab nations will face even steeper tariffs: Syria at 41%, Iraq at 39%, Libya at 31%, Algeria at 30%, Tunisia at 28%, and Jordan at 20%. This could significantly affect various industries, leading to higher costs for consumers and businesses reliant on imports. Many nations are expected to introduce countermeasures, which could lead to further price increases across a wide range of goods.

Despite these developments, experts suggest that the GCC region will likely remain largely unaffected in the long term, as the US maintains a trade surplus with all six GCC nations. While some sectors may experience indirect effects, the overall economic impact on the region is expected to be relatively minimal compared to other global markets. 

The broader geopolitical landscape continues to evolve, and many nations, including those in the GCC, will need to navigate the uncertainty as they adapt to this changing trade environment.