Since US President Donald Trump took office in January 2017, he began implementing strong economic policies aimed at protecting American industry. The most prominent of these policies was the imposition of tariffs on US imports from various countries, including allied nations. The trade war sparked by Trump has significantly impacted the economies of several countries around the world, including Arab countries. Due to the reciprocal tariffs, stock markets were affected and global economic growth prospects declined. Despite attempts to calm the situation, the trade war continued to escalate, and the tariff war became more ferocious on April 2, 2025, leading to the imposition of comprehensive tariffs on most countries. What is the impact of this war on Arab countries? What are the 10 most significant Arab countries affected by this trade dispute?
Arab-American Trade and its Economic Impact
To assess the impact of the trade war on Arab countries, it is necessary to first understand the volume of trade between Arab countries and the United States. Total merchandise trade between the United States and the Middle East and North Africa (MENA) region reached $141.7 billion in 2024, according to the Office of the United States Trade Representative (USTR). U.S. exports to the region in 2024 were approximately $80.4 billion, while imports from the region were $61.3 billion, resulting in a trade surplus of $19.1 billion.
The Role of Arab Countries in Trade with the United States
Arab countries are among the United States’ major trading partners, particularly in the goods sector. This trade divides into a group of countries that vary in their impact on the U.S. economy and vice versa. Here are the top 10 Arab countries that Trump’s tariff policy significantly affected.
United Arab Emirates
The UAE is the United States’ largest trading partner in the Middle East. Total trade with the United States reached $34.4 billion in 2024, with the UAE achieving a trade surplus of $19.6 billion. However, it has been significantly impacted by Trump’s tariffs, which have significantly impacted imports of certain goods.
Saudi Arabia
Saudi Arabia is the United States’ second-largest trading partner in the region. Total trade between the two countries in 2024 amounted to $25.9 billion, but US exports to Saudi Arabia declined by 4.8%. The Kingdom’s imports from the United States were also impacted by the new tariffs, which declined by 19.9%.
Egypt
Egypt, one of the largest Arab economies, has been significantly impacted by Trump’s trade war. Total trade with the United States reached $8.6 billion in 2024. Although US exports of goods to Egypt increased by 36%, the new tariffs have harmed Egyptian exports to the US, threatening economic growth.
Morocco
Trade between the United States and Morocco reached $7.2 billion in 2024, with U.S. goods exports increasing by a significant 37.3%. However, the U.S.-Morocco trade war has impacted imports of some important goods for Morocco, such as agricultural goods, threatening food security.
Qatar
Qatar experienced a decline in trade with the United States, with total trade between the two countries reaching $5.6 billion in 2024. However, most significant impact was an 18.3% decline in U.S. goods exports to Qatar. U.S. tariffs also caused a 10.3% decline in Qatari imports from the United States.
Jordan
Jordan is one of the few Arab countries that exports more than it imports from the United States. However, U.S. tariffs have significantly impacted the Jordanian economy, and trade with the United States reached $5.4 billion in 2024. The trade surplus also decreased by 2.3% compared to the previous year.
Trump’s tariff policy has significantly affected the rest of the Arab countries
Kuwait
Trade between the United States and Kuwait reached $4.1 billion in 2024. With U.S. goods exports declining by 14.7%, the Kuwaiti economy was significantly impacted. Kuwait faces greater challenges importing U.S. goods, which have been subject to additional tariffs.
Algeria
Algeria has been severely impacted by the trade war between the United States and Arab countries. Trade with the United States reached $3.5 billion in 2024, with U.S. goods exports to Algeria declining by 15.5%. With Algerian imports from the United States declining by 18.7%, Algeria has been significantly affected.
Oman
Trade between the United States and Oman reached approximately $3.3 billion in 2024. U.S. goods exports to Oman increased by 5.1%, but Oman’s imports from the United States decreased by 20.2%. Some sectors that rely on U.S. imports have also been affected. Bahrain
Bahrain’s trade with the United States amounted to approximately $2.9 billion in 2024. Although US goods exports declined by 1.8%, Bahrain also felt the impact of tariffs, which affected the import of some vital goods.
The Impact of the Trade War on Economic Growth in Arab Countries
The trade war between the United States and the rest of the world, particularly Arab countries, will certainly have a negative impact on economic growth in the region. One of the most significant impacts is the decline in these countries’ exports to the US market, which will lead to a decline in their national revenues. The increased cost of imports due to tariffs may also increase the prices of basic goods, potentially leading to increased inflation.
Future Prospects and the Impact of Tariffs
Based on President Trump’s recent statements about imposing further tariffs on Arab countries, it appears that the effects of this trade war will continue to impact the Arab economy in the coming years..
Economic Damage from Tariffs
The trade war imposed by the United States under Trump’s leadership significantly impacted many Arab countries. While some countries gained in trade, tariffs caused economic damage felt across all of them. It is important for Arab countries to take measures to mitigate these damages by diversifying their trade markets and boosting domestic production to meet future economic challenges.
