Trump Imposes 10% Tariff on UAE, Saudi Imports

Photo : Reuters

The United States has decided to put new taxes on things it buys from other countries. This will also affect the UAE and Saudi Arabia, as they will have to pay 10% extra tax on the goods they sell to the US. Many other countries will pay even higher taxes.

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Pakistan will have to pay 29% extra, India 26%, and the Philippines 17%. Even some of America’s friends, like the European Union and Japan, will not be spared. The EU will pay 20% extra, while Japan will have to pay 24%. Japan has said it is unhappy with this decision and is thinking about how to answer back.

These new taxes will start soon. The 10% tax will begin on April 5, and the higher taxes for some countries will start on April 9. President Trump called this “Liberation Day” and said these taxes are a way to make things fair. He believes other countries have been unfair to the US by putting their own taxes on American goods. He says these new rules will help America make more things at home and depend less on foreign goods.

But not everyone agrees. Many experts say these taxes will cause problems. They believe prices of everyday items will go up, people will spend more money, and businesses may struggle. Some even say that if this goes on for a long time, the economy may slow down, and some countries could face a recession.

The world’s money markets have already reacted badly. Japan’s stock market has fallen to its lowest point in eight months. Stock prices in the US and Europe have also dropped. Since February, US stock markets have already lost nearly $5 trillion in value.

China, the second-biggest economy in the world, will be hit even harder. It will have to pay 34% extra tax, on top of a 20% tax that Trump had already put before. China has asked the US to cancel these taxes immediately and has said it will take action if needed.

The US Treasury Secretary, Scott Bessent, has asked other countries not to fight back. He warned that if countries respond with their own taxes, things could get worse, and prices of goods could rise even more. But many experts believe other nations will not stay silent and will take their own steps.

Some of America’s biggest trade partners, Canada and Mexico, already have to pay 25% extra taxes on many products. Even though they were not included in this latest tax increase, trade relations between them and the US are still not good.

Even inside the US, not everyone agrees with Trump’s decision. Some politicians from his own party are worried these taxes will hurt businesses and people. Just hours after Trump’s announcement, the US Senate voted 51-48 to cancel taxes on Canadian goods. Some Republicans also joined in to oppose the president’s decision. But this bill is unlikely to pass in the House of Representatives, which is controlled by Trump’s party.

Despite all the criticism, Trump’s team believes these taxes will be good for America in the future. His top economic advisor, Stephen Miran, admitted that the first few months might be hard but said these taxes will help America in the long run. "There will be some problems at first," he said. "But in the end, these taxes will make America stronger."

With the first taxes starting on April 5 and the second round on April 9, the coming weeks will be important. Countries around the world are now thinking about how they will respond. Many experts say that if this tax war continues, it could slow down the global economy, make daily life more expensive, and create problems for people everywhere.