emirates7 - Dubai, UAE – As Donald Trump resumes his presidency and introduces a fresh wave of sweeping tariffs, global markets brace for potential ripple effects. With the United States standing as the world’s second-largest trading partner, these measures are expected to have broad economic consequences. The latest tariff—a 25% levy on steel and aluminium—reflects the administration’s assertive trade policy.
For the UAE, which accounts for a modest share of global steel exports, the immediate impact may be less severe than for countries more reliant on the US market. However, recent market volatility indicates that investors are anticipating prolonged tariff retaliations. Josh Gilbert, Market Analyst at eToro, suggests that tariffs are likely to persist as a negotiation tactic under Trump's leadership.
President Trump’s use of tariffs to achieve diplomatic objectives was evident in the reversal of levies on Canada and Mexico. His administration’s approach, which pressures countries to negotiate directly, could mean emerging markets such as India, Brazil, and Taiwan will face more pressure moving forward.
While the full implications of Trump’s tariffs on oil prices seem limited, the impact on trade routes and regional markets remains significant. The UAE’s continued focus on economic diversification beyond oil may offer some cushion, though the speed at which the nation adapts to changing trade flows will determine its long-term stability.
As global trade and manufacturing trends shift under Trump's re-election, the UAE’s agility in protecting its interests will be crucial for investors monitoring the nation’s economic future. Caution remains, as trade tensions are poised to affect corporate earnings and investor sentiment.
Josh Gilbert, Market Analyst at eToro, adds, “Investors should remain vigilant as the long-term impacts of these trade tensions play out across global markets.”
For the UAE, which accounts for a modest share of global steel exports, the immediate impact may be less severe than for countries more reliant on the US market. However, recent market volatility indicates that investors are anticipating prolonged tariff retaliations. Josh Gilbert, Market Analyst at eToro, suggests that tariffs are likely to persist as a negotiation tactic under Trump's leadership.
President Trump’s use of tariffs to achieve diplomatic objectives was evident in the reversal of levies on Canada and Mexico. His administration’s approach, which pressures countries to negotiate directly, could mean emerging markets such as India, Brazil, and Taiwan will face more pressure moving forward.
While the full implications of Trump’s tariffs on oil prices seem limited, the impact on trade routes and regional markets remains significant. The UAE’s continued focus on economic diversification beyond oil may offer some cushion, though the speed at which the nation adapts to changing trade flows will determine its long-term stability.
As global trade and manufacturing trends shift under Trump's re-election, the UAE’s agility in protecting its interests will be crucial for investors monitoring the nation’s economic future. Caution remains, as trade tensions are poised to affect corporate earnings and investor sentiment.
Josh Gilbert, Market Analyst at eToro, adds, “Investors should remain vigilant as the long-term impacts of these trade tensions play out across global markets.”