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.<\/p>\n
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.<\/p>\n
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%).<\/p>\n
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.<\/p>\n
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.<\/p>\n
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