Trump tariffs threaten $22bn in Arab exports says UN

Bahrain and Jordan worst hit

UAE also badly affected

Algeria faces 30% tariff

Bahrain and Jordan are the countries likely to be most affected by tariffs planned by President Donald Trump on non-oil exports by the Arab world to the US worth nearly $22 billion, a United Nations body has warned.

Despite a sharp fall in the region’s sales of oil to the US over the past decade, it is still one of the largest economic and trading partners of Arab countries, the UN Economic and Social Commission for Western Asia (Escwa) said.

The value of Arab exports to the US fell from $91 billion in 2013 to $48 billion last year. But non-oil exports rose from $14 billion to nearly $22 billion in the same period, Escwa said in a report on Saturday.

The new Trump administration has hit Egypt, Morocco, Turkey and the six members of the Gulf Cooperation Council with a 10 percent tariff on all non-oil imports. But Tunisia is in line to suffer tariffs of 28 percent, Jordan 20 percent and Algeria 30 percent.

Bahrain, Egypt, Jordan, Lebanon, Morocco and Tunisia are more exposed, given their reliance on the US market, Escwa said.

Jordan is likely to be affected most, as the US accounts for 25 percent of its total exports. Bahrain is also exposed, given its high aluminium and petrochemical exports, Escwa said.

“The UAE will also be strongly affected by the US import tax, given its high re-exports to that market, estimated at over $10 billion per year,” the UN body said.

Register now: It’s easy and free

AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East.