UAE hit with 10% tariff as Trump targets dozens of nations (VIDEO)
Global trade faces major disruption as new US duties take effect
DUBAI: United States (US) President Donald Trump announced a sweeping new tariff policy on Wednesday, imposing a baseline 10 percent duty on all imports, including those from the United Arab Emirates (UAE).
Higher rates will apply to several nations, with China facing tariffs exceeding 50 percent.
The new levies, set to begin April 5, mark one of the most aggressive US trade policies in decades and are expected to spark global economic shifts.
Trump’s trade tariffs
Trump unveiled the so-called “reciprocal tariffs” during an event at the White House, declaring that years of unfair trade had disadvantaged American workers. The policy aims to counteract foreign levies on US goods, with the president arguing that other nations have benefited at America’s expense. “Now it’s our turn to prosper,” Trump said, as he displayed a chart listing country-specific rates, including 10 percent on UAE and Saudi Arabia, 20 percent on Jordan, and 34 percent on China.
The announcement immediately triggered volatility in financial markets. US stock futures dropped over 3 percent in after-hours trading, and global oil prices slumped. Analysts warned that the move could lead to higher consumer costs and slowed economic growth worldwide.
Impact on UAE and beyond
The UAE, a key US trading partner in the Middle East, is among the nations hit with a 10 percent tariff. The Gulf country exports aluminium, petrochemicals, and luxury goods to the US, industries that could see significant price increases. Saudi Arabia and other GCC nations are also subject to the baseline tariff, adding to concerns about regional economic stability.
Trump’s new policy has far-reaching implications beyond the UAE. Japan and South Korea face tariffs in the mid-20 percent range, while Vietnam is subjected to nearly double that. The European Union, one of the largest US trading partners, will be charged a 20 percent duty. Canada and Mexico, however, are temporarily exempt due to ongoing trade negotiations.
Global response
The decision has sparked international backlash, with China warning of “strong countermeasures” against the new levies. The European Union has begun preparing emergency policies to mitigate the economic fallout. Meanwhile, Japan’s Nikkei index hit an eight-month low following the announcement, and traders expect further market instability as the April 5 deadline approaches.
Trump defended the move by calling it a necessary correction to decades of imbalanced trade policies. His administration has framed the tariffs as a way to boost American manufacturing and job creation, though critics argue they could lead to higher prices and economic uncertainty.
As nations weigh their responses, the global economy braces for a potential trade war that could reshape international commerce for years to come.