The recent imposition of global tariffs under the Trump administration has introduced a wave of economic uncertainty across international markets. Among the most affected countries is China, which has faced tariffs exceeding 125% on its goods exported to the United States. This escalating trade conflict has raised important questions regarding the nature of tariffs and their broader implications—particularly for countries like the UAE.
What Are Tariffs?
Tariffs are essentially taxes levied on imported goods, calculated as a percentage of the product’s value. For example, if a UAE-based company exports a product valued at USD 15 to the United States, and a 10% tariff is applied, the final cost of the product becomes USD 16.50. The company would then be required to pay USD 1.50 as a tariff to the U.S. government.
While the UAE is not subjected to the same high tariff rates as countries like China, the ripple effects of global trade disruptions can still influence its economy. The UAE’s strategic position in global commerce, coupled with its diversified trade relationships, makes it susceptible to both direct and indirect consequences of shifting trade policies.
