USA import tariffs on other countries and UAE as savior

From centuries, international governments are taking several measures to protect their local industries from the foreign competition. USA import tariffs on different countries are a way to shield their home-grown businesses from the cheap international alternatives. However, the UAE is a savior for foreign countries facing highest customs duties from the United States.

In recent decades, the global trend is toward lowering business barriers, through international agreements and institutions, to promote open trade. That shift came to an abrupt halt in 2025 with the sweeping tariff impositions by U.S. President Donald Trump. Arguably, these tariffs represent the most far-reaching trade restrictions by the United States since World War 1.

This initiative is taking the motto of Make America Great Again (MAGA) to a whole new level. Effectively, they are reversing the decades of gradual business, corporate, and industrial liberalization. Someone’s gain is someone’s loss (the US is winner here on the expense of the rest of the world).

The new policy includes a baseline 10% duty on nearly all imports, alongside sharply higher “reciprocal” tariffs at specific nations. Hardest-hit countries are Brazil (50%), Syria (41%), Laos (40%), Myanmar (40%), Switzerland (39%), Canada (35%), Iraq (35%), and Serbia (35%). Also, major U.S. trading partners face steep increases, China (44%), the European Union (30%), and Japan (34%).

One of the most prominent countries is the UAE with baseline 10% customs duty on imports inside the USA. So, the entrepreneurs in the countries with the worst impact can think about shifting business operations to the UAE. Joint ventures, manufacturing partnerships, and production outsourcing are among some other available options. Keep reading this post to get the information on this matter.

Customs duties on US imports from different countries

The U.S. government sent global stock markets crashing with sweeping tariff policy in April 2025. Liberation Day tariffs build upon the earlier imposition of customs duties by Donald Trump in his second presidential term. Under this plan, nearly all imports now face a standard 10% duty, with extra “reciprocal” charges applicable to certain countries.

Also known as Trump tariffs, they have pushed the U.S. import duties to some of the highest levels worldwide. They took effect in several countries around the world in September 2025. The UAE with baseline 10% tariff, open business culture, and global reach is emerging as relocation destination for international companies.

Countries with highest USA import tariffs worldwide

These countries are undergoing maximum impact of 35% to 50% due to the steepest customs duties on the US imports.

• Brazil (50%)
• Syria (41%)
• Laos (40%)
• Myanmar (40%)
• Switzerland (39%)
• Canada (35%)
• Iraq (35%)
• Serbia (35%)

Now, we briefly look upon these countries with maximum hit by US import tariffs by Trump government.

Brazil

The United States has imposed a sweeping 50 % tariff on Brazilian goods, one of the most severe trade penalties Brazil has faced in decades. Announced by President Donald Trump in late July 2025 and taking effect in early August, the move was framed in response to Brazil’s handling of former President Jair Bolsonaro’s prosecution and alleged “unfair” trade practices. This places Brazil among the nations under the highest tariff pressure in the U.S. market.

Severely hit Brazilian sectors by US import tariffs

Exports from Brazil to the USA span a wide range across multiple verticals. Products such as orange juice, civil aircraft, machinery, metals, and energy, including pulp and oil, were exempted from the hike. Nevertheless, several Brazilian sectors have took the hardest hit by the import tariff measures by the United States govt.

• Coffee, beef, seafood, tropical fruits (like mango and papaya), cocoa, and sugarcane, all now face the full 50% tariff
• Brazilian firms expect at least US$1 billion in losses in the second half of 2025, especially in agricultural exports

Brazilian economic downfall fears

The fearsome USA import duties pose a significant threat to the Brazil’s economy on these fronts.

• Brazil has launched its third global bond sale of 2025, raising funds to shore up liquidity despite the tariff crisis
• Coffee prices in Brazil are rising, with major local roasters like 3 Corações and Melitta lifting prices amid surging raw bean costs
• Economic slowdown is already taking hold: Second-quarter 2025 GDP growth is estimated at just 0.3 %, down from 1.4 % in Q1
• Analysts warn of possible zero or negative growth in the latter half of the year unless stimulus measures ramp up

Relief measures by Brazil

The leadership of Brazil is pursuing a multifaceted approach to this dilemma of the US import charges.

• “Sovereign Brazil” aid package: President Lula announced a 30 billion reais (~US$5.5 billion) credit line for exporters, tax deferrals, extended insurance, and incentives to purchase domestically produced goods affected by tariffs
• Public procurement support: The government will buy products like açaí, coconut water, mangoes, nuts, honey, and fish, redirecting them into public programs such as school meals and hospital supply chains. Notably, coffee and beef were excluded, as they are expected to find other markets.
• Legal and diplomatic response: Brazil filed formal consultations with the WTO and began legal reviews under its new Trade Reciprocity Law, though Lula emphasized negotiation over immediate retaliation

Syria

The United States has imposed a 41% tariff on Syrian goods, the highest among all nations. It was signed by President Donald Trump on 31st July 2025, under his evolving “reciprocal tariffs” policy. The move targets Syria due to insufficient alignment on trade or national security matters with the U.S.

This sharp tariff came as Syria was seeing some easing of economic sanctions elsewhere, signaling a harder line from USA. Syria’s trade with the U.S. is minimal, roughly $11 million in exports in 2024, primarily in agricultural goods and antiques. USA import tariffs can still hamper Syria’s fragile post-war economic recovery while sending a strong political signal.

• 2nd April 2025: The groundwork for the reciprocal tariff system was established through Executive Order 14257, citing national security threats from sustained trade deficits
• 31st July 2025: A new executive order updated the list of countries and set the actual tariff at 41% for Syrian imports
• 7th August 2025: USA import tariffs on Syria became effective

Laos

The United States has enforced a 40% reciprocal tariff on imports from Laos, one of the most severe trade penalties imposed on any Southeast Asian partner in 2025. Originally, under President Donald Trump’s “Liberation Day” policy announced in April, Laos faced a 48% tariff. However, after issuing tariff letters on 7th July 2025, the U.S. reduced this rate to 40%, effective from 1st August 2025.

Adversely hit Laos verticals by US tariffs

Regardless of Laos having relatively modest share of US imports, the 40% import tariff still jeopardizes these critical export channels.

• Garments and textiles: Key drivers of Laos’s export activity are under threat, potentially impacting thousands of workers
• Other vulnerable exports: Including wood furniture, footwear, electronics components, and Lao coffee
• Sectors deeply integrated into regional supply chains

Financial implications for Laos

Despite the small trade volume, the US tariffs can strain investor confidence and reduce foreign direct investment. Moreover, it can stiffen the Laos’s integration in regional trade networks including China, Thailand, Vietnam, and the EU. The repercussions for Laos are severe in these alleys.

• Around 20,000 garment workers, possibly more, are expected to be affected due to reduced orders and potential factory closures
• Exports to the U.S. account for just 3% to 6% of Laos’s GDP, but disruptions could amplify broader economic vulnerabilities
• Economists foresee a slowdown in growth: GDP growth projected to dip from 4.3% in 2024 to around 3.9–4.0% in 2025–2026 due to declining investment, exports, and demand from major partners

Actions by Laos to offset impact

While, details of specific policy relief (such as subsidies or export diversification) remain limited publicly. Nevertheless, the Laos government’s engagement reflects the stakes involved. Laos is actively pursuing mitigation strategies to overcome the resulting bottlenecks of the USA import tariffs.

• The Ministry of Industry and Commerce, in partnership with private sector representatives (via LNCCI), is developing countermeasures to support exporters, particularly in manufacturing
• With exports still integral to economic stability, authorities are exploring ways to sustain operations in special economic zones and retain investor interest

Myanmar

The United States has imposed a 40% tariff on Myanmar’s goods, one of the steepest penalties the Southeast Asian nation has faced in recent years. Announced by President Donald Trump on 7th July 2025, the decision came as part of Washington’s broader “reciprocal tariff” strategy targeting countries with trade practices deemed unfavorable to the U.S. This move places Myanmar alongside Laos and Syria, which are also facing some of the highest tariff rates under the new policy.

Most hit Myanmar sector by US import tariffs

The U.S. has been a key destination for Myanmar’s garments, footwear, and accessories, especially under the cut-make-pack (CMP) manufacturing model. Although Myanmar’s overall exports to the U.S. remain under $1 billion annually, the tariff strikes directly at its most labor-intensive and export-dependent industries. With the new 40% tariff, these industries face severe disruption.

• Garments and apparel, employing hundreds of thousands in Yangon and other industrial zones
• Shoes and bags, previously benefiting from tariff exemptions
• Textile-based accessories, which make up a growing share of exports

Economic crunch in Myanmar

With already fragile growth after years of political instability, Myanmar’s GDP can see a notable slowdown. Particularly, if it does not quickly secure alternative export markets. Economists and industry leaders are warning of a sharp downturn on these fronts.

• US orders for shoes, bags, and garments are expected to decline significantly
• Tens of thousands of factory jobs, particularly for women in the garment sector could be lost
• Export earnings may fall by 40–50%, straining foreign exchange reserves

Response by Myanmar for relieving pressure

The government of Myanmar publicly expressed “sincere appreciation” for Trump’s willingness to negotiate. It signals an interest by the Myanmarese administration in keeping trade channels open with the USA. However, the authorities are trying to counter the financial shock with diplomatic overtures and these internal measures.

• Negotiation Requests: Min Aung Hlaing formally asked Washington to reduce the tariff to 10–20%, while offering reciprocal tariffs of 0–10% on U.S. goods
• Diversification Plans: Officials are exploring deeper trade with China, India, and ASEAN neighbors to offset losses
• Domestic Support: Local business groups are urging the government to provide credit guarantees and subsidies to protect jobs in the garment sector

Nations withe severe USA import duties internationally

These countries are facing a severe effect of 20% to 30% from the USA import tariffs.

• Algeria – 30%
• Bosnia and Herzegovina – 30%
• China – 30% – Exempt till negotiations
• Libya – 30%
• South Africa – 30%
• Brunei – 25%
• Kazakhstan – 25%
• Mexico – 25%
• Moldova – 25%
• Tunisia – 25%
• Bangladesh – 20%
• Sri Lanka – 20%
• Taiwan – 20%
• Vietnam – 20%

States with moderate USA import customs rates globally

These countries are having a moderate effect of 15% to 19% due to USA import tariffs.

• Cambodia – 19%
• Indonesia – 19%
• Malaysia – 19%
• Pakistan – 19%
• Philippines – 19%
• Thailand – 19%
• India – 18%
• Nicaragua – 18%
• Afghanistan – 15%
• Angola – 15%
• Austria – 15%
• Belgium – 15%
• Bolivia – 15%
• Botswana – 15%
• Bulgaria – 15%
• Cameroon – 15%
• Chad – 15%
• Costa Rica – 15%
• Croatia – 15%
• Cyprus – 15%
• Czech Republic – 15%
• Denmark – 15%
• DRC – 15%
• Estonia – 15%
• Ecuador – 15%
• Equatorial Guinea – 15%
• European Union – 15%
• Fiji – 15%
• Finland – 15%
• France – 15%
• Germany – 15%
• Ghana – 15%
• Greece – 15%
• Guyana – 15%
• Hungary – 15%
• Iceland – 15%
• Ireland – 15%
• Israel – 15%
• Italy – 15%
• Ivory Coast – 15%
• Japan – 15%
• Jordan – 15%
• Latvia – 15%
• Lesotho – 15%
• Liechtenstein – 15%
• Lithuania – 15%
• Luxembourg – 15%
• Madagascar – 15%
• Malawi – 15%
• Malta – 15%
• Mauritius – 15%
• Mozambique – 15%
• Namibia – 15%
• Nauru – 15%
• Netherlands – 15%
• New Zealand – 15%
• Nigeria – 15%
• North Macedonia – 15%
• Norway – 15%
• Papua New Guinea – 15%
• Portugal – 15%
• Poland – 15%
• Romania – 15%
• Slovakia – 15%
• Slovenia – 15%
• South Korea – 15%
• Spain – 15%
• Sweden – 15%
• Trinidad and Tobago – 15%
• Turkey – 15%
• Uganda – 15%
• Vanuatu – 15%
• Venezuela – 15%
• Zambia – 15%
• Zimbabwe – 15%

India

The United States has imposed a 50% tariff on Indian goods, one of the steepest trade penalties India has faced in decades. Announced by President Donald Trump on 6th August 2025, the 25% tariff decision came in response to India’s continued purchases of Russian oil despite U.S. warnings. An additional 25% tariff penalty was added on 27th August 2025, bringing the total tariff to 50%.

This move placed India alongside Brazil, making it one of the countries facing the highest tariff barriers in the American market. This escalation is reshaping India–U.S. trade dynamics, putting immense pressure on Indian exporters, who rely heavily on the American market. The U.S. remains one of India’s largest export destinations, accounting for nearly $90 billion in annual shipments. On 2nd February 2026, Donald Trump announced slashing import tarrifs on Indian products to 18% after discussion with Narendra Modi.

Most affected Indian industries by the USA import tariffs

With the new tariff, about two-thirds of exports (worth $60 billion) now face higher duties. Meanwhile, critical sectors such as pharmaceuticals, petroleum products, and electronics have remained largely exempt or face lower duties. However, the hardest-hit industries in India by USA import tariffs include the following.

• Textiles and apparel is a major employer in Tamil Nadu and Tirupur
• Gems and jewelry are heavily centered in Surat
• Leather goods and footwear concentrated in Uttar Pradesh
• Marine products (shrimp exports) particularly from Andhra Pradesh and Odisha
• Chemicals and plastics spread across Gujarat and Maharashtra

Indian financial fallout with growth at risk

For the labor-intensive industries, where margins are already slim, the tariff can prove devastating. Well-known economists are warning of a sharp financial shock.

• Export volumes could plunge by 70%, cutting shipments to around $18.6 billion
• Overall trade with the U.S. may shrink by 43%
• India’s GDP growth for FY2025–26 could fall by 0.4% to 0.6%
• Hundreds of thousands of jobs in export hubs such as Surat, Noida, Gujarat, and Tirupur are at risk

Response by Indian government

There are calls to not bowing to the pressure of the US import duties in India. Government is pushing for turning the crisis into an opportunity for long-term self-reliance. So, the Indian administration is working to cushion the impact through these measures.

• Relief packages with credit guarantees for exporters and small businesses
• GST reforms, including tax cuts on consumer goods to boost domestic demand
• Diversifying exports toward new markets in Europe, Southeast Asia, Latin America, and Africa
• Strengthening “Atmanirbhar Bharat” (self-reliant India) by promoting domestic manufacturing and semiconductor production

Realms with baseline USA import duty rates

These countries have the least effect due to baseline USA import rate of 10% only.

• Albania – 10%
• Andorra – 10%
• Angola – 10%
• Antigua and Barbuda – 10%
• Argentina – 10%
• Armenia – 10%
• Australia – 10%
• Azerbaijan – 10%
• Bahamas – 10%
• Bahrain – 10%
• Barbados – 10%
• Bhutan – 10%
• Burkina Faso
• Burundi – 10%
• Belarus – 10%
• Belize – 10%
• Benin – 10%
• Cape Verde (Cabo Verde) – 10%
• Central African Republic – 10%
• Chile – 10%
• Colombia – 10%
• Comoros – 10%
• Cuba – 10%
• Djibouti – 10%
• Dominica – 10%
• Dominican Republic – 10%
• Falkland Islands (UK) – 10%
• Egypt – 10%
• El Salvador – 10%
• Eswatini – 10%
• Eritrea – 10%
• Ethiopia – 10%
• Gabon – 10%
• Gambia – 10%
• Georgia – 10%
• Grenada – 10%
• Guatemala – 10%
• Guinea – 10%
• Guinea-Bissau – 10%
• Haiti – 10%
• Honduras – 10%
• Iran – 10%
• Ivory Coast – 10%
• Jamaica – 10%
• Kenya – 10%
• Kiribati – 10%
• Kosovo – 10%
• Kuwait – 10%
• Kyrgyzstan – 10%
• Liberia – 10%
• Maldives – 10%
• Mali – 10%
• Marshall Islands – 10%
• Mauritania – 10%
• Micronesia – 10%
• Mongolia – 10%
• Montenegro – 10%
• Morocco – 10%
• Nepal – 10%
• Niger – 10%
• North Korea
• Oman – 10%
• Palau – 10%
• Panama – 10%
• Paraguay – 10%
• Peru – 10%
• Qatar – 10%
• Russia – 10%
• Rwanda – 10%
• Saint Kitts and Nevis – 10%
• Saint Lucia – 10%
• Saint Vincent and the Grenadines
• Samoa – 10%
• San Marino – 10%
• São Tomé and Príncipe – 10%
• Saudi Arabia – 10%
• Senegal – 10%
• Sierra Leone – 10%
• Singapore – 10%
• Solomon Islands
• Somalia – 10%
• South Sudan – 10%
• Sudan – 10%
• Suriname – 10%
• Tajikistan – 10%
• Tanzania – 10%
• Timor-Leste (East Timor) – 10%
• Turkmenistan – 10%
• Tuvalu – 10%
• Togo – 10%
• Tonga – 10%
• Ukraine – 10%
• United Arab Emirates – 10%
• United Kingdom – 10%
• Uruguay – 10%
• Uzbekistan – 10%
• Yemen – 10%
• All other non-exempt nations – 10%

Impact of the USA import duty on the UAE businesses

In 2025, the Trump administration introduced a broad reciprocal tariff policy that set a 10 percent baseline duty on most imports into the United States. For the UAE, this means key export categories such as electronics, machinery, plastics, and textiles are subject to this standard 10 percent rate. The one major exception is aluminum, which falls under Section 232 national-security tariffs.

Here, the UAE exporters face a much steeper 50 percent duty. Compared with many Asian exporters that now pay significantly higher rates, the UAE’s position under the U.S. tariff system remains relatively clear-cut, 10 percent on most products, with aluminum singled out for the heavier charge.

Still, the outlook isn’t entirely negative. Vijay Valecha, Chief Investment Officer at Century Financial, points out that because the overall trade volume between the U.S. and the GCC remains relatively small, the broader impact should be limited. For instance, the GCC supplies around 16% of America’s aluminum imports, and any dip in U.S. demand could be redirected toward local development projects.

The greater challenge lies in energy. As one of the region’s leading oil exporters, the UAE’s economy is deeply tied to global oil demand. When trade tensions escalate and the world economy slows, factories reduce output, transportation declines, and energy use falls. This domino effect directly impacts the UAE, lower oil demand means lower prices, cutting into vital export revenues. The USA import tariff by Trump may not drastically hurt overall trade volumes, but the ripple effect on oil demand and investment sentiment remains a significant concern for the nation.

Registration process in Dubai for USA tariff effected businesses

Companies in countries having devastating impact of USA import tariffs can move their operations to the UAE. Also, they can think about joint ventures and partnerships with the UAE businesses in the same sector. From selecting the right business structure to obtaining licenses and visas, here is step-by-step procedure to navigate the journey.

• Identify business activity
• Choose corporate jurisdiction
• Decide legal structure
• Get preliminary approval
• Reserve company and trade name
• Prepare necessary documentation
• Acquire business license
• Secure business location
• Register corporate banking account
• Apply for UAE visas

Next, we briefly discuss these steps for the licensing procedure in Dubai for businesses escaping USA import tariffs.

Identify business activity

Begin by researching the market to spot opportunities and define your business activity. Ensure that your chosen activity is permitted in Dubai and aligns with your long-term goals.

Choose corporate jurisdiction

Your choice of jurisdiction depends on factors such as your target market, type of business, and ownership preferences. Dubai mainland allows broader market access throughout the UAE. Whereas, free zones offer 100% foreign ownership and tax benefits.

Decide legal structure

Select the most suitable legal entity for your business in Dubai, UAE. Whether, it is a sole proprietorship, a limited liability company (LLC), or another structure. Remember, an LLC is the most popular option for entrepreneurs due to its flexibility and scalability.

Get preliminary approval

Take initial approval with a no-object certificate (NOC) from Department of Economic Development (DED) or a free zone authority.

Reserve company and trade name

Select a unique company name that complies with Dubai’s naming regulations. Similarly, go for reserving a brand aligning trade name for your business. Avoid words with offensive, religious, or political connotations, and confirm that both names are not already taken.

Prepare necessary documentation

Draft all essential legal documentations for successful business registration in Dubai. Fore example, business plan, passport and visa copies of shareholders, Memorandum of Association (MOA), premises tenancy agreement, etc. Proper documentation ensures smooth company license approval from the UAE regulators.

Acquire business license

Submit your trade license application to the Department of Economy and Tourism (DET). Or, you can file the application with the respective chosen free zone authority. Keep in mind, some business activities may require additional approvals from other government entities.

Secure business location

Determine whether you need a physical office, shared workspace, or a virtual office address. For a physical office on the mainland, you must obtain a tenancy contract (Ejari) registered with the relevant authority.

Register corporate banking account

Choose a bank that suits your business needs and open a corporate account. You’ll need to provide documents such as your trade license, MOA, and shareholder details to complete the process.

Apply for UAE visas

If, you plan to sponsor yourself or employees, apply for visas under your company. The number of visas you can obtain often depends on your office space. Each visa holder must complete medical tests and secure an Emirates ID.

Conclusion

By 2025, numerous countries did significantly eliminate or reduce tariffs through free trade agreements (FTAs), aiming to expand their access to international markets. However, recent shifts in U.S. trade policy under the Trump administration are introducing new tariffs. Potentially, they are prompting retaliatory measures from trading partners and initiating fresh rounds of global trade negotiations.

The UAE, like much of the world, is navigating uncertain economic times. Yet, in the face of new tariffs, the country finds itself in a somewhat better position compared to others. Under the new policy, a 10% tariff on imported USA has been placed on goods coming from the UAE and Saudi Arabia, while Jordan faces a steeper 20%.

These measures will inevitably raise export costs for GCC-based businesses, making it harder for them to stay competitive in U.S. markets. The UAE has actively pursued FTAs to bolster its trade relations. Notably, the Comprehensive Economic Partnership Agreement (CEPA) with India, effective from May 1, 2022, facilitates tariff reductions or eliminations on over 80% of products, promoting smoother cross-border trade.

Similarly, the UAE signed a CEPA with Australia in November 2024, aiming to eliminate tariffs on over 99% of Australian exports to the UAE and reduce Australian tariffs on UAE-produced goods, with expected savings of $40 million annually for Australian consumers.

Is your business reeling from the onslaught of the skyrocketing USA import tariffs? Moving your manufacturing or corporate operations to the UAE, or exploring joint ventures/partnerships there is the way forward. Make your business relocation seamless with the help of professional consultants at KWS Middle East right now.

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