Riyadh (Brussels Morning Newspaper) – Gulf stock markets fell in early trade as U.S. import tariffs raised concerns over global economic growth, forcing investors to shy away from riskier assets, Reuters reported.
U.S. President Donald Trump, in a discussion on Fox News, refused to predict whether his tariffs on Canada, China and Mexico would result in a U.S. economic downturn. Tariffs have been a critical concern for investors, with many feeling that they can damage economic growth and be inflationary.
U.S. President Donald Trump’s new 25% tariffs on imports from Mexico and Canada already go into effect, along with fresh duties on Chinese goods, causing trade wars that could hit economic growth and increase prices for Americans still smarting from years of high inflation, economic experts stated.
How are Gulf stock markets reacting to the US tariffs?
According to reports, Saudi Arabia’s benchmark index declined 0.6%, struck by a 2.1% drop in ACWA Power Company and a 2.2% drop in Saudi Arabian Mining Company. Meanwhile, oil giant Saudi Aramco was lower by 0.6%. Oil prices dropped on concerns over U.S. tariffs‘ effect on global growth and rising OPEC+ output.
Dubai’s main share index withdrew 0.7%, with blue-chip developer Emaar Properties dropping 1.1% and toll operator Salik plunging 1.8%. In Abu Dhabi, the index declined 0.1%. The Qatari index dropped 0.4%, with the Gulf’s largest lender Qatar National Bank dropping 0.3%.
How do US tariffs impact global economic growth?
There has been a trend of soft U.S. economic data continued after monthly figures indicated the labour market produced fewer jobs than expected in February, in the first payrolls report charging Trump’s policies.
According to experts, the market now awaits the U.S. Consumer Price Index (CPI) data due and the Producer Price Index (PPI) data expected, to measure the Federal Reserve’s interest rate stance. The Fed’s decisions usually drive monetary policy in the six-member Gulf Cooperation Council (GCC), as most regional currencies are linked to the dollar.
Sarhan Basem is Brussels Morning's Senior Correspondent to the European Parliament. With a Bachelor's degree in English Literature, Sarhan brings a unique blend of linguistic finesse and analytical prowess to his reporting. Specializing in foreign affairs, human rights, civil liberties, and security issues, he delves deep into the intricacies of global politics to provide insightful commentary and in-depth coverage. Beyond the world of journalism, Sarhan is an avid traveler, exploring new cultures and cuisines, and enjoys unwinding with a good book or indulging in outdoor adventures whenever possible.
