Middle East

Gulf Nations Shielded from Trump’s Tariff Hikes, Experts Say

According to experts the Gulf Cooperation Council member states together with the United Arab Emirates face minimal harm from the new tariffs imposed by US President Donald Trump which have negatively affected global markets and provoked strong reactions from leading economies.

Why the GCC Avoids Higher Tariffs
The new trade policy applies a base 10% tax to all incoming imports to the United States yet it doubles or triples the duties for foreign entities that maintain large trade surpluses with America. Because of their positive trade surplus with America the Gulf nations kept away from “worst offender” classification which prevented them from getting higher import tariffs.

Vijay Valecha from Century Financial stated that “The GCC region together with the UAE is expected to maintain its insulation from these new tariffs.” The $27 billion value of American exports to the UAE during 2024 exceeds the $7.5 billion worth of imports thereby enabling the UAE to avoid higher US tariff classifications.

Trump’s trade policy focuses its taxes on countries which run significant trade deficits against the United States including China the European Union and Japan. The existing measures will reportedly supply $700 billion per year in revenue yet they intensify global trade conflicts.

Potential Indirect Consequences for the GCC
Expert analysts predict that the UAE along with other Gulf neighbors will not face direct tariff increases but they remain at risk of developing secondary effects.

The GCC countries that export oil face market instability because global economic decreases triggered by tariffs tend to decrease oil price levels and market demand.

Due to its fixed currency relationship with the US dollar the UAE dirham becomes vulnerable to purchasing power erosion and inflation when the dollar strengthens.

The price increase of essential items in automobile marketing along with electronics goods and construction materials will increase inflation in the market.

The economic stability of GCC nations persists as Dubai continues developing its trade and investment alliances across markets that extend past U.S. borders.

Web Desk

Recent Posts

Dubai Ranked Best City in the World for Female Solo Travellers in 2025

Turkish health insurance company InsureMyTrip declared Dubai as the foremost destination for individual female travelers…

3 hours ago

Dubai to Host Landmark Global AI Summit in 2026 Marking 70 Years of Artificial Intelligence

In 2026 Dubai plans to elevate its position as the prime discussion space for global…

4 hours ago

Nad Al Sheba Mall Officially Opens, Bringing Lifestyle and Retail Hub to Dubai

The city of Dubai received Nad Al Sheba Mall as its novel shopping and lifestyle…

1 day ago

UAE Residents Set for Four-Day Weekend During Eid Al Adha 2025

Residents of UAE will experience a four-day summer holiday during Eid Al Adha 2025 starting…

1 day ago

YouTube Turns 20 with Surge in Millionaire Creators Across UAE, Saudi and Egypt

YouTube shows significant growth through Saudi Arabia and UAE together with Egypt because their respective…

2 days ago

Dubai Uses AI to Monitor Over 279,000 Real Estate Listings

The Real Estate Advertising Governance Platform of Dubai Land Department (DLD) has tracked above 279,000…

2 days ago