Morocco, Egypt could gain edge in Europe and America from new US tariffs

The Head of Research at EFG Holding, a MENA region-based financial services company, Ahmed Shams El Din, told media that the recent US tariffs imposed by Trump could create greater opportunities for Moroccan and Egyptian exports to enter European and American markets, especially given the strong industrial base in both countries.

In an interview on the Market Indicators program, held on the sidelines of the group’s 19th annual investment conference in Dubai, Shams El Din emphasized that Arab and Gulf countries could play a key role in the global supply chains of Western nations, thanks to their strong private sectors.

EFG’s Head of Research pointed out that Morocco, particularly in the automotive industry, has strong opportunities, while Egypt offers a competitive edge in manufacturing and outsourcing for Western markets.

Similarly, the Gulf countries are experiencing strong growth in non-oil sectors like electric vehicle production and other related industries.

Shams El Din added that “the non-oil economy has become the engine driving the economies of Saudi Arabia and the UAE over the past five years.”

He also pointed out that “linking Gulf countries’ currencies to the US dollar protects them from foreign exchange risks.”

This comes as US President Donald Trump imposed tariffs on 185 countries, ranging from 10% to 50%, affecting around 125 countries. Egypt, Saudi Arabia, the UAE, and Morocco saw tariffs of 10%, while Jordan faced a 20% tariff. Syria saw a 41% tariff, Libya 31%, and Iraq 39%.

Earlier this week, Spanish media raised concerns that Spanish exports could become 20% more expensive due to new tariffs from Trump on EU goods. Meanwhile, products from Morocco face only a 10% tariff, giving the kingdom a competitive advantage.

They argue that this could lead the U.S. to view Morocco as a cheaper supplier than Spain for goods produced in both countries. Some also worry that the tariffs could prompt Spanish companies—or companies based in Spain—to consider relocating operations to Morocco.