Amid escalating global trade tensions, Egypt has begun taking preemptive steps to shield its economy by bolstering its reserves of strategic commodities—starting with wheat. Prime Minister Mostafa Madbouly announced the measures during a press conference in Cairo, highlighting government efforts to secure supply chains and maintain economic stability.
“We have started with wheat as a priority, increasing the local procurement price to encourage supply and strengthen our national stockpile,” Madbouly said. The government raised the price of wheat for the 2025 season to EGP 2,200 per ardab (150 kg), at an additional budgetary cost of EGP 6 billion.
The announcement comes as trade tensions between the United States and China reach new heights. On Wednesday, China’s Ministry of Finance declared a sweeping 84% tariff hike on American imports, retaliating against the White House’s decision to raise tariffs on Chinese goods to 104%.
Also, Madbouly warned that these moves could trigger a wave of global inflation and economic slowdown. “What we’re witnessing is a comprehensive global trade and economic war,” he noted. “The decisions made by President Trump are impacting all nations and undoing three decades of global economic integration.”
Capital Outflows and Market Reaction:
Egypt, like many emerging markets, experienced a surge in capital outflows earlier this week, with foreign investors pulling out hot money amid rising global uncertainty.
Madbouly acknowledged the pressure on local markets on Sunday and Monday, but noted that the pace of outflows had slowed significantly by Tuesday.
Last week, President Trump imposed new tariffs ranging from 10% to 50% on 185 countries. Egypt, along with Saudi Arabia, the UAE, and Morocco, was hit with a 10% tariff. Jordan faced 20%, while higher tariffs were levied on Syria (41%), Libya (31%), and Iraq (39%).
Despite external shocks, Madbouly assured that Egypt’s economy remains resilient. “We’ve absorbed the market reaction over the past two days,” he said, adding that the government has tasked its economic team with crafting multiple scenarios to navigate the evolving situation.
“We are working to secure the country’s needs, particularly in energy, to ensure a stable electricity supply this summer,” he added.
On the domestic front, Madbouly confirmed that Egypt is moving ahead with economic reforms, including plans to list five military-affiliated companies on the stock exchange. The government has also hired consulting firms to prepare the launch of the Ministry District redevelopment project in downtown Cairo, which is expected to boost tourism capacity without compromising the area’s historical character.
He also revealed that Italian energy giant Eni has a clear roadmap to ramp up its natural gas exploration activities in Egypt over the coming months, signaling continued investor interest in the country’s vital energy sector.
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