Repercussions of Trump's 10 percent tariff on US imports from Egypt

On April 2, 2025, US President Donald Trump announced a sweeping 10 percent tariff on all Egyptian exports. This move is aimed at boosting American manufacturing and cutting the trade deficit. The policy hits Egypt's key export sectors—especially garments, iron, and steel—threatening a significant blow to its USD1.95 billion export market to the US. With US investments in Egypt valued at $8 billion, the tariff could strain economic ties and force Egypt to seek new markets or renegotiate terms. The impact may reshape Egypt's trade strategy and test diplomatic relations with Washington. Our correspondent in Egypt, Ahmad Abdel Rahman, explains.

The new tariff policy announced by US President Donald Trump on April 2, 2025, imposing 10 percent tariffs on Egypt, took effect immediately. The imposition of these tariffs aims to boost American manufacturing, reduce the trade deficit, and create more jobs in the US.

Egyptian exports to the US

The value of trade between Egypt and the US increased in the first 10 months of 2024, reaching $7.593 billion. Total Egyptian exports to the US amounted to approximately $1.95 billion, and the main export categories included:

Garments: Clothing was valued at $663.61 million, while manufactured goods or crocheted items were valued at $366.05 million.Iron and steel: Exports in this category amounted to $202.62 million.
Carpets and textile floor coverings: These products contributed $124.63 million to total exports.
‍Prepared vegetables, fruits, and nuts: This category saw exports worth USD95.65 million.
‍Glass and glassware: Exports in this sector amounted to $70.14 million.

It is worth noting that ready-made garments accounted for 53.1 percent of Egypt's total exports to the US.

Trade between Egypt and the US

Bilateral trade between Egypt and the US has witnessed fluctuations. In the first nine months of 2022, trade between the two countries increased to $7.3 billion, compared to $6.5 billion during the same period in 2021, recording a growth of 13.4 percent. By 2023, Egyptian exports to the US declined by 15.5 percent year-on-year, reaching $1.9 billion, compared to approximately $2.3 billion in 2022. Similarly, U.S. exports to Egypt declined by 22.7 percent in 2023, reaching USD5.4 billion, down from USD6.9 billion in 2022.

As of November 2024, US investments in Egypt amounted to approximately $8 billion. This figure reflects Egypt's concerted efforts to attract foreign direct investment, particularly from the US, through implementing economic reforms and offering incentives to foreign investors.

Historically, Egyptian investments in the US have been relatively modest compared to US investments in Egypt, and the focus has primarily been on promoting exports to the US market rather than large-scale direct investments.

Repercussions of the new US tariff policy

The US imposition of a 10 percent tariff on all imports from Egypt, as announced by President Trump, is expected to affect Egyptian exports significantly. Key sectors such as garments, iron and steel, and textiles, which constitute a significant portion of Egypt's exports to the US, may face a decline in their competitiveness in the US market. This development will also likely lead to a decline in export volumes and negatively affect Egypt's trade balance with the US.

In response, Egyptian exporters may need to explore alternative markets or improve their products' value proposition to mitigate the tariffs' impact. The Egyptian government may also seek diplomatic channels to negotiate exemptions or reductions in the tariffs imposed to protect export sectors.

For more stories on the Middle East and North Africa (MENA) go to www.lcdmedia.net