US‑Egypt trade breakthrough: Ending tariff tensions
The United States and Egypt are nearing the conclusion of negotiations after the announcement of tariffs on Egyptian goods by Donald Trump's administration, reported the U.S. ambassador during the economic forum in Cairo on Sunday. Herro Mustafa Garg stated that the agreement would be beneficial for both parties involved.
"The (Egyptian) government has taken bold steps to remove long-standing non-tariff market barriers to American exports. This represents a significant win for both our countries, for our companies, and for our people," stated Herro Mustafa Garg, U.S. ambassador in Egypt, on Sunday.
The Washington representative announced the upcoming agreement at the economic forum in Cairo, where fifty-five investors from the U.S. participated, according to the Egyptian service Ahram Online.
Garg highlighted that the anticipated trade agreement will be a "significant milestone" in unlocking new opportunities for American companies and supporting greater transparency and trade cooperation.
Donald Trump's administration, when announcing tariffs on nearly the entire world, did not overlook Egypt. Goods from the Nile Nation faced a 10% tariff.
Escalation between the U.S. and the EU
Meanwhile, tensions have risen in discussions between the United States and the European Union. Donald Trump, on Friday, stated that the negotiations, in his opinion, are not progressing, therefore he announced an increase in tariffs on EU goods to 50%. This will start on June 1st.
"We don't need further provocations, but serious negotiations," said Germany's finance minister Lars Klingbeil in an interview with the Sunday edition of "Bild." He added that "American tariffs threaten the U.S. economy as much as they do the German and European economies."
EU Trade Commissioner Maroš Šefčovič countered Trump's statement by affirming that the Union is acting "in good faith" towards a trade agreement with the U.S. based on respect rather than threats.
Egypt's challenges related to Houthi and Israel
Egypt's public finances are suffering due to Houthi rebels disrupting trade movement in the Red Sea and the Suez Canal. The group aims to pressure Israel to cease the conflict in the Gaza Strip.
Revenues from the Suez Canal fell to 880.9 million dollars (1.2 billion CAD) in the fourth quarter of last year, representing a significant decrease compared to 2.4 billion dollars (3.3 billion CAD) the previous year.
Negotiations appear to be at a standstill. On one hand, Tel Aviv does not plan to disarm, and on the other, the Houthis have been unable to halt the American military. Although Donald Trump announced a large-scale operation against the rebels, it ended as swiftly as it began due to inefficiency at high costs.
The Egyptian Suez Canal Authority (SCA) announced that from May 15, it is introducing a 15% discount on transit fees for large container ships. This promotion will be valid for 90 days and applies to container ships with a net tonnage of at least 145,188 tonnes.
