Although the Gulf Cooperation Council countries were mostly spared from US President Donald Trump’s reciprocal tariffs on Wednesday, the new taxes would impact the entire region.
The White House placed 10% reciprocal duties on the UAE and Saudi Arabia, claiming that both countries tax the US a similar amount. That is, they do it to us as we do it to them. “Very simple,” Mr. Trump remarked at a ceremony in Washington.
However, this was the lowest level of duties levied by the Trump administration. Other Middle Eastern and North African countries that faced reciprocal levies included Israel (17%), Tunisia (28%), Jordan (20%), Egypt (10%), and Morocco (10%).
China (34%), Vietnam (46%), and the European Union (20%) were whacked with some of the biggest tariffs. Countries not on the list will face a ten percent baseline tariff, effective April 5. A White House official stated that reciprocal tariffs will go into force on April 9.
Mr. Trump framed much of the tariff debate around the US trade imbalance, which was $1.2 trillion at the end of 2024. However, the US had a trade surplus with the GCC last year. GCC nations also have relatively modest tariffs of 10% or less on most goods, and their currency pegs to the US dollar help them escape accusations of manipulation.
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