Egypt Daily News – Egypt has started taking proactive measures to deal with the global trade war by hedging in the purchase of some strategic goods, according to Mostafa Madbouly, the Egyptian Prime Minister. He indicated that his government began with wheat, which had its local price raised to ensure the highest possible supply.
At the end of last year, the Egyptian government raised the local wheat procurement price for the 2025 season to 2,200 pounds, with an additional cost of 6 billion pounds.
Madbouly predicted, during a press conference held today in Cairo, that the world would witness a significant wave of inflation, accompanied by an economic recession, due to the pressures of the trade war caused by Trump’s tariffs.
The trade war escalated today after China’s Ministry of Finance announced an additional 84% tariff on American goods starting tomorrow, in response to the White House increasing tariffs on China to 125%.
Impact of the Trade War on Egypt Egypt witnessed capital outflows from the local market on Sunday and Monday, influenced by the trade war like other countries, according to the Prime Minister, who noted that the pace of the outflows had slowed down yesterday and today.
Last week, U.S. President Donald Trump approved imposing tariffs on 185 countries, ranging from a maximum of 50% to a minimum of 10%, affecting around 125 countries. The tariffs included Egypt, Saudi Arabia, the UAE, and Morocco at 10%, Jordan at 20%, as well as Syria with a tariff of 41%, Libya with 31%, and Iraq with 39%. However, U.S. President Donald Trump announced a 90-day suspension of new tariffs after his trade war shook the global economy.
The Egyptian Prime Minister said during the press conference, “We have absorbed what happened in the markets over the past two days,” referring to the global effects that also impact Egypt and all countries worldwide.
Madbouly continued, “What is happening is a comprehensive global trade and economic war. The decisions of U.S. President Trump have impacted all countries. Now, what has been built over the past thirty years is being destroyed. It is very likely that we will experience global inflation and recession, as warned by economists and international institutions.”
Stable Situation in Egypt
Despite the Trade War Madbouly stated that he had directed the economic team of the government to handle the current situation and prepare different scenarios. However, he confirmed, “Despite everything happening, our economic situation is stable, and we are working to meet all of the country’s needs, especially in energy, to secure electricity for the upcoming summer.”
