U.S. and UAE to Discuss New Trade Agreement Amid Rising Tariffs

The United States and the United Arab Emirates are poised to initiate talks on a prospective bilateral trade agreement, aimed at reducing tariffs on the UAE's steel and aluminum industries. This development, confirmed by insiders, was sparked during President Donald Trump's recent visit to Abu Dhabi.

Currently, the UAE faces a hefty 25% tariff on its steel and aluminum products, a figure set to double to 50% under the Trump administration's policy. As the second-largest exporter of these materials to the U.S., the UAE is pressing for tariff relief to maintain its significant share in the American market.

During discussions in Abu Dhabi, UAE officials pointed out their readiness to swiftly advance trade negotiations, citing their success in concluding similar pacts with India, Turkey, and Australia. Although a comprehensive free trade agreement appears unlikely, any resulting deal may still carry the Comprehensive Economic Partnership Agreement (CEPA) designation.

(With inputs from agencies.)