Tourism industry stakeholders are carefully assessing the long-term impact of the new tariffs announced by the US President on regional travel flows, corporate spending and outbound demand in the US Middle East.
“It's too early to say, but uncertainty can be a bit conservative with what you're doing in your business. Anything that leads to a barrier to your business can affect business spending and where business spending is going.”
Trump issued an executive order in April 2025, imposing a 10% tariff on goods imported into the United States from all countries, fulfilling a higher obligation on imports from certain countries. According to a report by the PWC Middle East, Middle East countries such as the United Arab Emirates and Saudi Arabia face 10% tariffs, while other countries like Jordan and Iraq face 20% at a rate of 20%.
“We don't see any direct impact of the tariffs announced by President Trump in the Middle East, but it's indirect. If the global economy doesn't work, no one can escape.
Trump's tariffs caused early disruption in global financial markets before the 90-day suspension took effect. Amidst investors' concerns, Middle Eastern stock markets recorded the worst decline in the five years when new tariffs were announced, according to local media.
Ciaran Kelly, Managing Director for the Middle East and Africa at FCM Travel, said the current situation could lead to diversifying global trade and travel patterns, which could benefit the Middle East.
“There are incredible opportunities in areas like Jebel Ali in Dubai. Dubai is a world-class logistics hub, Qatar is the largest LNG producer, and Egypt is energizing the manufacturing industry.
Trump is scheduled to visit Saudi Arabia, Qatar and the United Arab Emirates next month. Tour observers say it can shape future diplomatic and economic debates regarding tariffs.
