Government considers relief measures after phone exemption ends

Good afternoon, friends, and welcome to the start of a shorter-than-usual workweek. Following backlash over the phone exemption rollback, the government is now discussing relief measures for expats — from extra handset allowances to customs installment plans. Elsewhere (and as per usual), Trump ramps up tariff threats, this time against Canada, and we look at how Apple’s staggered iPhone launch could shake up regional distribution.

*** It’s Inside Industry day — your weekly Sunday briefing of all things industrial in Egypt. Inside Industry explores what it takes to turn Egypt into a manufacturing and export powerhouse, ranging from initial investment and planning through to product distribution, land allocation, industrial processes, supply chain management, labor, automation and technology, inputs and exports, and regulation and policy.

In today’s issue: We’re spotlighting Egypt’s dairy giant Bel Group for January’s Manufacturer of the Month.

THE BIG STORY TODAY-

📍Hold the phone: Discussions are currently underway to extend new incentives for Egyptians living abroad to mitigate the impact of the recent decision to scrap the exceptional customs exemptions on mobile phones, three government sources tell EnterpriseAM. Proposals include allowing Egyptians with permanent residency abroad to bring in one additional phone annually for work-related commitments, and the introduction of airport-based installment plans for customs duties.

^^ Read the full story in tomorrow’s edition of EnterpriseAM.

THE BIG STORY ABROAD-

🌐 US President Donald Trump’s tariff campaign has picked back up, threatening Canada with a 100% tariff on goods sold in the US if the country reaches a deal with China. Trump has accused Canadian Prime Minister Mark Carney of turning Canada into a “drop off port” for Chinese goods, suggesting that this is China’s tactic to evade US tariffs. The threat comes after Carney announced a preliminary deal earlier this month with Beijing to cut tariffs and remove trade barriers.

^^Read more on: CNBC.

Trump’s threats to attack Iran’s government after its violent crackdown on protestors has led to several European airline suspensions to Middle East destinations over geopolitical concerns. Air France temporarily cancelled flights between Paris and Dubai over the weekend, and KLM suspended flights to Dubai, Riyadh, Dammam, and Tel Aviv until further notice, avoiding airspace over Iran and Iraq as well.

ALSO- Some 10k flights are expected to be canceled due to forecasts of a major winter storm sweeping across the US. The storm is expected to bring heavy snow, sleet, and freezing rain over the eastern two-thirds of the country. In response, US crude and natural gas production experienced a drop while spot power prices surged — Energy Aspects predicted a total loss of around 300k barrels a day and 86 bn cubic feet of natural gas production.

^^Read more on: Bloomberg, CNBC, and Reuters.

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

• Orascom Construction shareholders gave its board the green light to proceed with the acquisition of OCI Global’s construction business. The only snag? The seller is currently barred by a Dutch court from signing on the dotted line;
• Egypt’s current account deficit narrowed by a significant 45.2% y-o-y to USD 3.2 bn in 1Q FY 2025-26, down from USD 5.9 bn a year earlier. The uptick was driven by a near 30% y-o-y rise in remittances to over USD 10 bn and an increase in the services surplus on the back of tourism and Suez Canal revenues;
• Fitch Solution’s research unit BMI now sees Egypt’s growth accelerating to 5.3% in the current fiscal year, up 0.3 percentage points from their October forecast.

☀️ TOMORROW’S WEATHER- We’re in for a warm, windy day in the capital tomorrow, with temperatures reaching a high of 25°C and a low of 12°C, according to our favorite weather app.