ALBAWABA – According to experts, Dubai is expected to benefit economically from the recent tariffs imposed by the United States and China on trade and products.
US-China tariffs and how UAE will benefit
Last month, the US President Donald Trump announced the impose of new tariffs on imports from Canada, Mexico, and 10% on China’s exports, claiming they are meant to protect the US economy and trade policies.
In response to Trump’s new tariffs, China announced additional tariffs on select US imports. The Ministry of Finance of the People’s Republic of China stated that it will impose a 15% tariff on coal and liquefied natural gas imports from the US this month, along with a 10% tariff on American crude oil, farm equipment, and certain cars and trucks.
According to experts, the United Arab Emirates, particularly Dubai, is expected to benefit economically from the recent trade tensions between two of the world's major economic powers.
Chinese firms are considering Dubai for re-exports, attracted by its strategic location and favorable trade opportunities, which allow them to avoid tariffs and achieve higher revenues. (Shutterstock)
Experts claim that Dubai will experience a significant increase in trade flows, with shipments notably rising as multiple Chinese companies utilize the UAE as a trade hub to avoid taxes.
John Donigian, Senior Director of Supply Chain Strategy at Moody's, the American business and financial services company, stated: “Dubai’s status as a global trade hub could position it to benefit from tariff tensions, particularly through increased transshipment, re-exports, and supply chain diversification. While Southeast Asia and Mexico remain primary destinations for manufacturers relocating production, Dubai offers a strategic alternative for companies focused on high-value trade, logistics, and regional distribution.”
It is worth noting that China's exports to the United States were approximately $48.83 billion in December 2024. With the new US tariffs, Chinese companies are expected to target new markets to compensate for these losses.
Chinese companies might also lower the prices of their products, which would significantly benefit the UAE's trade market and economy, as they can secure great deals at competitive prices.
Notably, Chinese companies are eager to explore new markets, and the UAE presents an attractive option due to its diverse population and strategic location.
Chinese firms are considering Dubai for re-exports, attracted by its strategic location and favorable trade opportunities, which allow them to avoid tariffs and achieve higher revenues.
