The 25% steel and aluminum tariff announced by USA President Donald Trump on February 10, 2025 directly affects exports from Dubai and Saudi Arabia. Major producers such as Emirates Global Aluminum (EGA) and Dubai Aluminum Company Limited (DUBAL) export significant volumes to the US, while in Saudi Arabia, companies such as Ma'aden Aluminum and Al Yamamah Steel Industries are also strong in the market. While it is said that the new taxes may reduce the competitiveness of these companies by making their products more expensive in the US market, this situation is expected to lead exporting countries to search for new markets.
While alternative regions such as Europe, Asia and Africa come into prominence, local economies are likely to experience employment and income losses. The 5.3% decrease in the share value of Al Yamamah Steel Industries is noteworthy as one of the first reactions of the market to the tariffs. At the same time, changes in the steel and aluminum supply chain are said to affect the global trade balance.
The international transportation market is also expected to be negatively affected by these developments. With the decrease in shipments to the US, shipping companies are expected to reduce cargo volumes and increase transportation costs. As companies are forced to reorganize their logistics plans by identifying new trade routes, operational costs are expected to increase. The long-term effects on global trade will become clearer in the coming period.
Comments
No comment yet.