Tourism industry stakeholders are cautiously assessing the long-term impact of the new tariffs announced by US president Trump on regional travel flows, corporate spending and outbound demand in the Middle East for the US.
“It is too early to say, but any uncertainty causes businesses to become a little bit more conservative in what they are doing. Anything which leads to a barrier to business can have an impact on business travel spend or where business spend is going,” said Catherine Logan, regional senior vice president for EMEA and APAC at the Global Business Travel Association (GBTA).
Trump issued an executive order in April 2025, imposing a 10 per cent customs duty on goods imported into the US from all countries, with higher duties on imports from specific countries. Middle Eastern countries such as the UAE and Saudi Arabia will face a 10 per cent tariff, while others like Jordan and Iraq will face higher rates of 20 per cent, according to a report by PwC Middle East.
“We don’t see a direct impact of the tariffs announced by president Trump in the Middle East, but indirect. If the global economy is not doing well, nobody can escape. So, we hope the US can really understand what they are doing,” said Jane Sun, CEO of Trip.com Group.
Trump’s tariffs caused initial disruption in global financial markets before a 90-day suspension was implemented. Amid investor concerns, stock markets in the Middle East recorded their worst decline in five years when the new tariffs were announced, according to regional media.
Ciaran Kelly, managing director of Middle East & Africa at FCM Travel, said the current situation could lead to diversification in global trade and travel patterns, which may benefit the Middle East.
“There are phenomenal opportunities in the region like Jebel Ali in Dubai is a world-class logistics hub, Qatar is the largest LNG producer, Egypt has booming manufacturing. This could result in a shift of business via the Middle East into Africa or Asian markets,” he added.
Trump is scheduled to visit Saudi Arabia, Qatar and the UAE next month – a tour observers say could shape future diplomatic and economic discussions around the tariffs.
