The 3 most Arab countries affected by Trump customs duties

The new customs duties announced by US President Donald Trump after taking office last January caused global reactions that the Arab region was not far from it..

The Fitch Solichns report indicates that the largest consequences of American customs duties will be on the emerging debt markets, and that it will be limited to North Africa and the Middle East region, especially the Gulf Cooperation Council countries.

However, the report made it clear that the burdened markets such as Egypt, Lebanon and Jordan will bear more consequences, due to the increase in the cost of debt, which is linked to the increase in the power of the dollar globally.

He continued: “For example, the increase in the value of the dollar will be accompanied by a decline in the value of the Egyptian pound, which in turn will lead to a decline in inflation rates and affects economic activity, especially in light of the high interest rates“.

The report pointed out that the American customs duties will affect the Egyptian economic growth, because the slowdown in lowering the American interest rates will affect foreign investments in the debt tools in emerging markets, including Egypt, and he also pointed out that things can develop into investors in the debt tools to exit or liquidate some of their portfolios.

The report pointed out that these effects will occur indirectly amid expectations of high inflation rates again.

It is noteworthy that US President Donald Trump decided to double the customs duties to 20 percent and impose fees on all his country’s imports from Canada and Mexico is estimated at 25%, and it is scheduled to begin to implement this completely on the 2nd of next April.