U.S. and UAE Set Sights on Potential Trade Agreement Amid Rising Tariffs

The United States and the United Arab Emirates have signaled plans to negotiate a bilateral trade agreement, primarily targeting the reduction of tariffs on the Gulf state's steel and aluminum exports. According to sources, discussions on the trade agreement commenced during former President Donald Trump's recent visit to Abu Dhabi.

Trump's administration had previously imposed a 25% tariff on UAE's steel and aluminum which is set to double, impacting the Gulf state's crucial exports. Despite these challenges, the UAE remains the second-largest exporter of these products to the U.S. highlighting the significance of their trade relationship.

The UAE has demonstrated a rapid negotiation capability, evidenced by recent trade agreements with India and other nations. Although the U.S. may pursue a limited deal with the UAE, any agreement is expected to align with the UAE's Comprehensive Economic Partnership Agreement framework.

(With inputs from agencies.)