Revived US tariffs spark chilling effect

Long-term risks loom for Middle East over lower oil prices, high interest rates

As the United States imposes tariffs on many countries, even some of its closest allies, businesses in the Middle East are bracing for a chilling effect — a triple threat of depressed oil prices, non-oil export tariffs and high interest rates.

While the measures primarily target North America, the European Union and China, analysts say economies in the Middle East and North Africa remain vulnerable to secondary effects.

This month Goldman Sachs cut its 2025 GDP forecast for the US from 2.4 percent to 1.7 percent, citing uncertainty over tariffs.