3 Arab countries are more affected by Trump’s drawings

“Fitch Solichins” reported that the effects and repercussions of the new American customs duties on the Middle East and North Africa region and the major consequences of these definitions will be on emerging debt markets in the region, which are the countries of Egypt, Jordan and Lebanon, where these countries will be greatly affected to increase the cost of debt on them as a result of the global strength of the dollar.

In a report, Fitch added that the effects of the new American drawings will be limited, especially on the countries of the Gulf Cooperation Council, noting that the region’s exports will not be affected significantly; But the effect will be due to oil prices and high inflation rates.

The report recorded that the effects on Egypt will be indirect, that is, not on exports and foreign trade; Rather, it will be due to the large debt and the high value of the dollar globally … and thus will lead to the decline in the Egyptian pound; What will hinder the low prices, the decline in inflation rates, and also will hinder the monetary facilitation course in the Egyptian market in light of high interest rates.

According to the same source, this will, of course, affect economic growth in Egypt, and also the slowdown in the reduction in American interest rates will affect foreign investments in the debt tools in emerging markets, including Egypt, and may lead to the exit and liquidation of some of the foreign governors in them.

During this month, President Trump doubled the customs duties on Chinese goods by 20 percent, and imposed 25 percent fees on all imports from Canada and Mexico, which will enter into force in full by April 2.

The high customs duties on all imports of steel and aluminum entered into the United States on Wednesday, which prompted both Canada and the European Union to impose reprisal fees; Which will likely lead to the high prices that consumers pay, even if the importers absorb part of these costs, according to analysts.