Potential Impact of New Tariffs being Imposed by Donald Trump on the UAE and GCC – Century Financial
Vijay Valecha, Chief Investment Officer, Century Financial“The tariffs established during President Trump’s administration, expected to generate around $700 billion in revenue annually, have significant implications for both global and regional trade. On a global scale, these tariffs are primarily aimed at countries where the U.S. has large trade deficits, like China, Canada, and the EU, impacting sectors such as steel, aluminum, and automobiles. For instance, the 25% tariff on imported vehicles and components has put pressure on the global automobile industry and affected various sectors, including technology and renewables. In contrast, the GCC region, particularly the UAE, is likely to remain relatively insulated from these tariffs. In 2024, the U.S. enjoyed a substantial trade surplus with the UAE, exporting $27 billion while only importing $7.5 billion. This trade dynamic means that while indirect effects might arise if global demand drops, the direct impact on the GCC will likely be minimal, focusing mainly on a few industries.”
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