New US Tariffs Unlikely to Undermine Egyptian Exports, Says ICC Official

Egypt's exports to the United States are expected to remain competitive despite the latest U.S. tariff measures announced by President Donald Trump, according to Ayman Ezz, Secretary General of the International Chamber of Commerce (ICC) in Egypt.

Speaking in a televised interview on Sunday, Ezz said the practical impact of Washington's new tariff regime on Egyptian exports would be limited, noting that the effective increase amounts to 2.5 percentage points, rather than a completely new 12.5% duty.

"The previous 10% tariff expired on Friday and has simply been replaced by a 12.5% rate," Ezz said, arguing that the incremental increase is relatively modest.

Ezz said the majority of Egyptian exports to the U.S. market are shipped under the Qualified Industrial Zones (QIZ) agreement, which exempts eligible Egyptian products from the higher baseline U.S. customs duties that apply to many competing exporters.

While products qualifying under the QIZ program will be subject to the new 12.5% tariff, they will continue to benefit from exemption from the original customs duties, which often range between 29% and 50%.

Using ready-made garments as an example, Ezz said Chinese apparel exporters would face both existing import duties and the new tariff, whereas Egyptian manufacturers would only be subject to the 12.5% levy because of their preferential treatment under the QIZ arrangement.

He said this preserves Egypt's competitive advantage in terms of pricing and market access relative to competitors such as China, India, and Bangladesh.

Ezz also suggested that Egyptian fertilizer exports are unlikely to be affected by the new measures, citing global supply disruptions linked to the conflict in the Middle East and constraints on fertilizer production following disruptions to regional natural gas supplies.

He said international markets continue to face tight fertilizer supplies, increasing the likelihood that such products will receive exemptions from the tariff regime.

Regarding iron and aluminum exports, Ezz said their treatment remains under discussion, noting that existing international trade rules generally seek to avoid the imposition of overlapping tariffs on products already subject to elevated import duties.

Egypt's leading exports to the U.S. include ready-made garments worth approximately $1.3 billion, ships and floating structures worth around $175 million, food products and agricultural goods with roughly $200 million, as well as carpets and rugs with about $106 million, in addition to raw materials worth approximately $107 million.

He said these export categories will be subject to the new 12.5% tariff but will continue to benefit from exemptions from the substantially higher standard customs duties, helping maintain the competitiveness of Egyptian products in the U.S. market.