UAE Largely Unaffected by US Tariffs on Steel and Aluminium Due to Diversified Economy and Strong Export Infrastructure

Published: May 30, 2025 16:46

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[UAE largely shielded from US tariffs on steel and aluminium]

Despite the 25% US tariffs on steel and aluminium creating global trade uncertainty, the UAE remains mostly unaffected due to its diversified economy, strong export infrastructure, and role as a re-export hub. In 2024, the UAE exported 350,000 tonnes of aluminium to the US, ranking second among suppliers. Although not exempt from tariffs like Canada or Mexico, ongoing political engagement could lead to a bilateral deal, potentially expanding UAE’s market share—especially in aerospace and automotive sectors.

The domestic aluminium industry remains competitive, even as the US plans a $1.4 trillion investment in local smelting. On steel, the UAE’s construction sector is largely insulated, with over 3,500 ongoing projects and diversified import sources. Dubai's AED 2.6 billion logistics investment and strategic positioning as a transshipment hub further buffer against trade shocks. Meanwhile, April 2025 saw AED 46 billion in real estate transactions, a 23% monthly rise, driven partly by increased US and Chinese investor interest post-tariffs.

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