{"id":669420,"date":"2025-08-03T00:00:00","date_gmt":"2025-08-03T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2025\/08\/03\/how-will-the-wave-of-new-us-tariffs-hit-egypt\/"},"modified":"2025-08-03T00:00:00","modified_gmt":"2025-08-03T00:00:00","slug":"how-will-the-wave-of-new-us-tariffs-hit-egypt","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2025\/08\/03\/how-will-the-wave-of-new-us-tariffs-hit-egypt\/","title":{"rendered":"How will the wave of new US tariffs hit Egypt?"},"content":{"rendered":"

Egyptian exports to the US will continue to enjoy the baseline 10% tariff, remaining <\/strong>unaffected by the list of new tariffs<\/strong> unveiled by US President Donald Trump last week, a government source told EnterpriseAM.<\/p>\n

(Tap or click the headline above to read this story with all of the links <\/strong>to our background as well as external sources.)<\/p>\n

BACKGROUND-<\/strong> Trump last week published a list of new tariffs<\/a> under which trade partners were grouped into three tiers based on their trade balance and bilateral agreements with the US, with tariffs ranging from 10-40%. Canada, India, and Switzerland were among the hardest-hit.<\/p>\n

And what about exports under the QIZ agreement? <\/strong>A second source told us that Qualifying Industrial Zone (QIZ) exports are also expected to retain preferential access \u2014 but the source noted that US officials have yet to offer confirmation here. A team of officials has been holding talks their US counterparts to clarify the treatment of exports of products under the agreement.<\/p>\n

SOUND SMART- <\/strong>Egypt\u2019s QIZ pact<\/a> with the US and Israel, which came into effect in 2005, allows goods made in designated Egyptian zones to enter the US without duties or quotas provided they include around 10.5% Israeli content. The agreement \u2014 which has particularly helped boost Egypt\u2019s textile and garment exports to the US \u2014 was set up by the US to deepen regional cooperation and was modeled on an earlier three-way agreement with Jordan.<\/p>\n

How did the first wave of tariffs impact us? <\/strong>Exports to the US \u2014 Egypt\u2019s top market for garments \u2014 surged 16% y-o-y in 1H 2025 to USD 622 mn, according to data from the Apparel Export Council. The sector\u2019s total exports jumped 25% to USD 1.608 bn during the same period. The council expects full-year exports to reach a record USD 3.7 bn, with annual growth rates of 25-30% in the pipeline.<\/p>\n

What about other Egyptian exports?<\/strong> Around 55% of Egypt\u2019s exports to the US are garments. While Egypt\u2019s overall trade volume with the US remains relatively small, a senior government source told us the country could still feel knock-on effects of the broader tariff changes \u2014 including potential price increases or new duties imposed by affected trade partners.<\/p>\n

Efforts to safeguard the economy:<\/strong> Egypt is currently reviewing its own tariff structure to better support local industry and protect the market from imported inflation, one of the sources said.<\/p>\n","protected":false},"excerpt":{"rendered":"

Egypt will continue to face a 10% baseline tariff \u2014 and officials thing QIZ exports could still be duty- and quota-free.<\/p>\n","protected":false},"author":1,"featured_media":669421,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8516],"tags":[72,69,132,117],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-669420","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trade","tag-enterpriseam","tag-tax","tag-trade","tag-us","wpautop","entry"],"acf":{"mongo_id":"e68617fe-eb51-4191-9e7f-cd99dd30d909","order":"5","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/8\/14.jpg","photo_position":"above","homepage_title":"","full_issue_title":"How will the wave of new US tariffs hit Egypt?","related_issue":[669412],"teaser":"Egypt will continue to face a 10% baseline tariff \u2014 and officials thing QIZ exports could still be duty- and quota-free.","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2025\/8\/.802f0497-b557-4f81-9ba6-cb9c085ef58d.mp3"},"yoast_head":"\nHow will the wave of new US tariffs hit Egypt? 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