US‑Egypt trade ties strengthen amid tariff resolution
The United States and Egypt are nearing the conclusion of negotiations following the announcement of tariffs on Egyptian goods by the Donald Trump administration, the US ambassador revealed at an economic forum in Cairo on Sunday. Herro Mustafa Garg stated that the agreement would benefit both nations.
Herro Mustafa Garg, the US ambassador to Egypt, said on Sunday that the Egyptian government has undertaken bold measures to eliminate long-standing non-tariff market barriers to American exports. For him this is a significant win for both countries, their businesses, and for the people.
The representative from Washington announced the forthcoming agreement during the economic forum in Cairo, which was attended by 55 investors from the USA, as reported by the Egyptian service Ahram Online.
Garg added that the anticipated customs agreement would mark a "significant milestone" in unlocking new opportunities for American companies and fostering greater transparency and trade cooperation.
The Donald Trump administration, in imposing tariffs on almost the entire world, did not overlook Egypt. Goods from the Nile country were subjected to a 10 per cent tariff.
Escalation between the USA and the EU
Meanwhile, there has been an escalation in talks between the United States and the European Union. Donald Trump remarked on Friday that negotiations, in his opinion, are not progressing, prompting him to announce an increase in tariffs on EU goods to 50 per cent, effective from 1 June.
"We do not need further provocations, but serious negotiations," stated the German Finance Minister Lars Klingbeil in an interview for the Sunday edition of "Bild". He added that "American tariffs threaten the American economy as much as they do the German and European economies".
The EU Commissioner for Trade, Maros Sefcovic, responded to Trump's statement by asserting that the Union is acting "in good faith" towards a trade agreement with the USA based on mutual respect, not threats.
Egypt's issues related to the Houthis and Israel
Egypt's public finances are suffering significantly due to the disruption of trade activities on the Red Sea and the Suez Canal by the Houthi rebels. This group is obstructing trade to pressure Israel to cease hostilities in the Gaza Strip.
Revenue from the Suez Canal dropped to 830 million euros in the fourth quarter of last year, representing a notable decrease compared to 2.1 billion euros in the previous year.
The situation appears to be at a standstill. On one hand, Tel Aviv has no intention of disarming, while on the other, the Houthis have been unable to halt the American military despite Donald Trump announcing a large-scale operation against the rebels. As swiftly as it began, it concluded due to inefficiency and high costs.
The Egyptian Suez Canal Authority (SCA) has announced that from 15 May it will introduce a 15 per cent discount on transit fees for large container ships. The promotions will be valid for 90 days and apply to container ships with a net tonnage of at least 143,300 tons.
