New U.S. tariffs threaten Arab exports, Morocco among most affected, UN

The United States’s new tariffs could spell trouble for several Arab countries, especially Morocco, according to the UN’s ESCWA (Economic and Social Commission for Western Asia).

The warning comes as part of a new ESCWA policy brief, which says that more than $22 billion in non-oil Arab exports are now at risk. Morocco, along with Egypt, Tunisia, and Jordan, is among the countries expected to feel the biggest impact. 

These tariffs could increase financial pressure on governments by pushing up the cost of borrowing, potentially adding around $114 million to the bill in 2025 alone.

This financial strain might slow down social and investment spending, creating more hurdles for economies that are already facing global uncertainty.

Although Morocco’s exports to the U.S. have been growing over the past ten years, these new tariffs could throw a wrench in the progress. 

On top of that, with around 68% of Morocco’s exports heading to the European Union, the country is already heavily dependent on European markets, making it more vulnerable to any shakeups in that region.

With the U.S. also targeting major economies like China and India, Morocco might have a chance to step in and attract more global trade as supply chains shift. 

But the U.S. has delayed applying the new tariffs for most countries, except China, for 90 days, which might slow down any short-term benefits Morocco could gain.

To turn the situation around, ESCWA is calling on Arab countries to strengthen regional cooperation. It encourages activating agreements like the Greater Arab Free Trade Area and the Agadir Agreement to boost trade within the region and present a united front in global negotiations.

The organization also stressed the importance of improving infrastructure and updating economic regulations to attract investors and make economies more adaptable.

As ESCWA’s executive secretary Dr. Rola Dashti put it, these tariffs aren’t just a threat, they could also be a chance to build stronger, more flexible Arab economies.