Egypt Daily News – Egypt is among the three of most affected Arab countries by Trump’s tariffs. The new tariffs announced by US President Donald Trump after taking office last January triggered global reactions, from which the Arab region was not exempt.
A report by “Fitch Solutions” indicates that the greatest impact of the US tariffs will be on debt-laden emerging markets, while the effects will be limited on North Africa and the Middle East, particularly the Gulf Cooperation Council (GCC) countries.
However, the report clarified that debt-laden markets such as Egypt, Lebanon, and Jordan will bear greater consequences due to the increased cost of debt, which is linked to the strengthening of the US dollar globally.
It continued: “For example, the rise in the value of the dollar will be accompanied by a decline in the value of the Egyptian pound, which in turn will prevent inflation rates from decreasing and impact economic activity, especially amid high interest rates.”
The report explained that US tariffs would impact Egypt’s economic growth, as the slowdown in reducing US interest rates would affect foreign investments in debt instruments in emerging markets, including Egypt. It also pointed out that this could lead investors in debt instruments to exit or liquidate some of their portfolios.
The report noted that these effects would occur indirectly, amid expectations of inflation rates rising again.
It is worth mentioning that US President Donald Trump decided to double tariffs to 20% and impose a 25% tariff on all US imports from Canada and Mexico. The full implementation of these measures is scheduled to begin on April 2.
Egypt’s trade deficit rose by 11.9% in December last year
Egypt’s trade deficit rose by 11.9% in December, reaching approximately $4.151 billion, compared to $3.709 billion in November, according to data from the Ministry of Planning, Economic Development, and International Cooperation, based on calculations by the Central Agency for Public Mobilization and Statistics (CAPMAS).
The increase was driven by an 11.1% rise in total exports, which amounted to approximately $3.956 billion in December, up from $3.560 billion in November. Meanwhile, total imports grew by 11.5% to $8.107 billion, compared to $7.269 billion.
