Trump's tariffs on Egypt: opportunities, challenges and how to deal with them

In the midst of global economic transformations, US President Donald Trump's decision to impose tariffs has raised questions about its impact on the economies of various countries, including Egypt. What are the opportunities and risks facing the Egyptian economy How can we benefit and minimize the repercussions That's what we'll talk about in this article

In a move dubbed 'Restoring America's wealth', the US administration announced the imposition of tariffs on imports from 185 countries and regions around the world. This decision included Egypt, where 10% duties were applied to its exports from April 5, 2025, with higher duties expected to be applied later. This measure comes with the aim of reducing the US trade deficit and imposing the principle of reciprocity

Possible effects on the Egyptian economy

How will these tariffs affect the Egyptian economy

It will lead to an increase in the cost of Egyptian exports to the United States, reducing its price competitiveness. As a result, the volume of exports is expected to decrease, especially in sectors that depend on the price advantage. The impact may vary between sectors, and even the ready-to-wear sector benefiting from the qiz agreement may face new challenges. Egyptian exporters will also bear part of these costs in order to remain competitive.

Indirect effects

In addition to the direct effect, there are indirect effects. The slowdown in World Trade may affect the Suez Canal. The uncertainty may also deter some foreign investors. We may see inflationary pressures and a rise in the exchange rate, which may prompt the central bank to reconsider its interest rate

Possible impact on the Quez agreement

Even the Kuwait customs agreement, which allows some Egyptian products to enter without customs, may be affected. Imposing a 10% duty on all imports may reduce the comparative advantage of this agreement, which necessitates considering amending it to enhance Egypt's benefit from it under these new circumstances.

The possibility of the return of tariffs imposed by US President Donald Trump is causing widespread debate about their global economic impacts. Looking at Egypt, these trends may hold promising and unexpected opportunities.