US court overturns Trump global tariffs: What it means for MENA
Trump's defining economic policy of his second term has been dealt a key blow, upending a tariff regime that set levies in the Middle East as high as 41% for Syria even as most regional countries were insulated from the fallout.
The US Supreme Court struck down President Donald Trump’s global tariffs on Friday, dealing a major blow to his trade agenda and overturning measures that slapped levies as high as 41% on some countries in the Middle East and North Africa.
Although regional economies have not been the main target of Trump’s trade broadside, the White House has continued to use tariffs as a favored tool to target adversaries, including a 25% levy announced in January 2025 on countries trading with Iran.
What happened: In a 6-3 decision authored by Chief Justice John Roberts, the court ruled that Trump overstepped his authority by using emergency powers to impose broad reciprocal tariffs on countries worldwide.
The justices found that the president improperly invoked the International Emergency Economic Powers Act to justify two sets of tariffs: one applied to nearly all US trading partners to address trade deficits, and another targeting Mexico, Canada and China over fentanyl flows into the United States.
The ruling invalidates a key mechanism Trump used to reshape trade relationships and generate billions in tariff revenues. The court did not settle whether companies that paid the levies are entitled to refunds, leaving lower courts to address repayments.
Speaking at a news conference shortly after the ruling, Trump announced he would sign an order to impose a 10% global tariff under a trade law that allows him to implement levies for 150 days before requiring congressional approval.
Why it matters: The immediate economic impact on the Middle East and North Africa is likely to be limited. US-MENA trade volumes are modest compared to flows with Europe or Asia, and many of the region’s key exports — particularly oil and liquefied natural gas — were largely exempt from the tariffs.
Still, several countries faced steep rates under Trump’s adjusted tariff schedule introduced last August, including Syria (41%), Iraq (35%), Algeria (30%), Libya (30%) and Tunisia (25%), despite relatively small trade volumes with the United States. Others such as Israel, Jordan and Turkey were subject to mid-range levies, while Gulf states largely faced the 10% baseline rate.
Analysts had previously told Al-Monitor that Israel and Jordan were among the most exposed due to their share of exports to the United States.
Know more: A broader concern for MENA has been second-order effects. Trump’s tariff escalation contributed to global market volatility and raised fears of a slowdown in China. A downturn in Chinese demand would weigh on Gulf oil exporters and regional growth.
At the same time, trade tensions created openings for some countries, including Egypt and Morocco, to position themselves as alternative manufacturing hubs.
