#TrumpTariffs

An economist explains that the greatest impact of the tariff war announced by US President Donald Trump for Egypt will be on the Suez Canal.

Economist Hani Tawfik wrote in a Facebook post: "Trump's tariffs imposed on the entire world yesterday will bring down many companies and stock exchanges, first and foremost the US Stock Exchange itself."

The economist added: "For those wondering about Egypt, the greatest negative impact will be on the Suez Canal, due to the definite slowdown in supply chains and global trade resulting from the tariff hike."

Over the past two years, Suez Canal revenues have fallen to their lowest levels due to attacks launched by the Yemeni Houthi group on cargo ships and goods in the Red Sea.

Revenues from the Suez Canal, one of the country's most important official dollar sources, declined by about 60 percent over the past year.

Hani Tawfik continued: "In the dilemma of the US economy, Trump's tariff increases mean inflation due to the rising prices of imported goods, and unemployment and recession due to the decline in both imports and exports due to the countervailing tariffs."

He explained: "This means stagflation, the worst kind of inflation, which cannot be addressed solely through monetary policy, but rather through parallel long-term fiscal and trade policies."

Yesterday, the US President announced the imposition of broad tariffs on more than 180 countries, ranging from a minimum of 10 percent to nearly 50 percent, under the banner of "Liberation Day," with the aim of closing the trade deficit and reviving America's golden age.

The tariffs included 34 percent on China, 32 percent on Taiwan, 20 percent on the European Union, 10 percent on the UK, 25 percent on Canada and Mexico, and 46 percent on Vietnam.

He also imposed 10 percent tariffs on Egypt and 10 percent on other Arab countries, including Saudi Arabia, the UAE, and Kuwait.