Last week, President Trump called for a 90-day pause on the sweeping tariffs he had levelled on all foreign imports to allow for renegotiations, save for the tariffs on China. Stock markets rebounded, and several countries expressed cautious optimism. But for Washington’s closest allies, a pause is not enough.
Intended to balance America’s trade relationships, Trump’s tariffs instead inflicted disproportionate damage on two of Washington’s closest allies in the Middle East: Egypt and Jordan. For two nations that have aligned themselves with U.S. strategic objectives, hosted American troops, signed peace treaties with Israel and acted as key intermediaries in regional stability, the blow was both economic and symbolic. Rather than just targeting trade abusers, the tariffs also punished partners who have remained loyal to the U.S. through decades of shared interests and cooperation.
Now that Trump is walking his tariffs back, he should permanently rescind them from critical allies who should never have faced them in the first place.
Egypt, the most populous Arab country and a pillar of regional stability, was slapped with the new policy’s flat 10 percent tariff. Though not among the highest rates imposed, this levy nonetheless hit Egyptian exports at a critical moment. The U.S. is one of Egypt’s most important non-oil trading partners, with bilateral trade reaching $7.6 billion in the first 10 months of 2024. Of that, nearly $2 billion came from Egyptian exports, primarily in garments, agricultural goods and processed foods, sectors that had been expanding thanks to preferential access to the U.S. market. The Egyptian textile industry, in particular, employs hundreds of thousands, many of them women, and has become one of the success stories of Egypt’s manufacturing sector.
The sudden imposition of tariffs threw contracts into uncertainty, raised prices for American consumers and sparked fear among investors. Within days, the Egyptian pound slid over 2 percent, its sharpest drop since 2023, triggering a surge in import prices and exacerbating inflation, which already stood above 20 percent.
Jordan suffered even more acutely. Though its economy is smaller than Egypt’s, its alignment with the U.S. is arguably deeper. Jordan is one of only three countries in the region with a free-trade agreement with Washington and the only country in the Middle East and Africa whose trade with the U.S. surpasses its trade with China. In 2024, Jordan exported $3.11 billion to the U.S. (over 25 percent of its total exports) and imported $1.88 billion in American goods. Key sectors such as pharmaceuticals, apparel and agricultural products have relied on the stability of this trade relationship for growth and employment.
Yet under Trump’s new structure, Jordan’s goods were hit with a staggering 20 percent tariff rate despite the longstanding free-trade pact. That decision sent shockwaves through Jordanian manufacturers and exporters, who now face an uphill battle maintaining their foothold in the U.S. market. These penalties do nothing to benefit American industries. They simply disrupt a stable, mutually beneficial partnership that has underpinned regional cooperation.
Beyond the economic fallout, the political implications are equally damaging. Egypt and Jordan are both designated Major Non-NATO Allies, a status granted only to a select group of countries with extraordinary strategic ties to the U.S. Both nations have repeatedly demonstrated their value. Egypt has safeguarded peace with Israel since the 1979 Camp David Accords, opened its airspace and the Suez Canal to U.S. military operations and contributed to counterterrorism missions across the region. Jordan has served as a base for American troops, hosted refugees, assisted in Iraq and Afghanistan and plays a pivotal role in Israeli-Palestinian negotiations.
Egypt and Jordan are already feeling the economic harm of Trump’s tariffs, despite the 90-day pause. Contracts have been canceled, currency values have dropped and political goodwill has partially eroded. These two allies, more than any others in the region, deserve permanent exemption. They should never have been included in the first place.
Unlike China, whose trade practices genuinely warrant scrutiny, Egypt and Jordan play by the rules. Their economies are not structured to flood the American market with unfairly subsidized goods; they depend on exports to the U.S. for jobs, development and stability.
Maintaining these tariffs in any form risks more than economic strain — it threatens to weaken America’s most dependable relationships in a volatile region. As China and Russia are aggressively courting Middle Eastern states with infrastructure deals, arms sales and diplomatic cover, Washington can ill afford to alienate its most reliable allies. If these punitive measures continue, Cairo and Amman will be forced to reconsider the asymmetry of their alliance.
To correct course, the U.S. should take two immediate steps. First, it must make the tariff pause permanent for Egypt and Jordan, clearly signaling that these two allies are exempt from trade penalties meant for adversarial or unfair trading partners.
Second, it must fully reinstate U.S. foreign aid to both nations. For Jordan, that means the annual $1.45 billion in economic and military assistance that helps maintain internal stability. For Egypt, it means restoring the $1.3 billion in military financing that anchors the strategic peace with Israel and provides access for U.S. forces in the eastern Mediterranean.
These steps are not favors, but essential instruments of statecraft. Tariffs that punish allies are not only bad economics — they are catastrophic diplomacy. The U.S. must remember who its friends are, and act accordingly.
Abdullah Hayek is a contributor with Young Voices and an independent Middle East analyst and consultant based in Washington, D.C.
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