Beirut, April 20
A sharp rise in US trade protectionism is placing Arab economies under mounting pressure, endangering $22 billion worth of non-oil exports, according to a policy brief released by the United Nations Economic and Social Commission for Western Asia (ESCWA).

Jordan emerges as the most vulnerable, with nearly a quarter of its total exports bound for the United States. Bahrain is also flagged due to its heavy dependence on aluminum and chemical exports to the US market, Xinhua news agency reported.

Meanwhile, the United Arab Emirates could see disruptions to roughly 10 billion dollars in US-bound re-exports, a result of US tariffs on goods originally produced in third countries, said the brief.

The ESCWA brief also warns of growing financial strains across Gulf Cooperation Council (GCC) economies, which are contending with a sharp drop in global oil prices.

Further financial challenges loom for non-GCC states. ESCWA projects that Egypt, Morocco, Jordan, and Tunisia will collectively face an additional 114 million dollars in sovereign interest payments in 2025, driven by rising global bond yields amid investor uncertainty. These higher borrowing costs risk tightening national budgets and delaying development initiatives, it said.

Earlier this month, US President Donald Trump signed an executive order amid widespread opposition, imposing so-called "reciprocal tariffs" on its trading partners worldwide.

Earlier the US President said trading partner countries that are not able reach an agreement with the US by July 9, when the 90-day pause ends, goods coming to the US from there will be tariffed at the reciprocal rate announced originally.

For India, it would mean the tariff will go back to 26 per cent from the revised 10 per cent. Rates for other countries similarly revised for all partner countries that chosen to launch negotiations with the US instead of retaliating with higher tariffs on American goods, such as China.

US tariffs threaten Arab non-oil exports: UN agency