Stating that trade frictions cannot be resolved by raising protectionist barriers, Giovanni Tria, Italy’s former minister of economy and finance, told the Global Times, “Tariff tensions are having a big impact on the global economy.” He stressed that countries need to practice globalisation, which is the basis for development around the world.

Former Italian prime minister Paolo Gentiloni, while stating that globalisation will continue, remarked during the seminar, “the risk is that global trade in the future will not be based on rules, but on force and coalition,” stressing that the European Union (EU) is “very concerned” about such a shift.

He further added that raising protectionist barriers is not the solution to trade frictions. He called for efforts “to keep rules-based trade, free trade, going,” and requested countries to “invest in WTO reform… and give credit to the WTO.”

Former US Secretary of Commerce Carlos M. Gutierrez, who was part of the panel, added that the economic cost of protectionism is also becoming more evident. He told the Global Times, “Tariffs are not a way to manage the global economy permanently.”

He further noted that despite ongoing frictions between Washington and Beijing, room remains for economic cooperation between the world’s two largest economies.

Li Cheng, a professor in the Department of Politics and Public Administration at the University of Hong Kong, said that the current wave of tariff and trade tensions should be seen as part of a broader and widely shared trend in the West, especially in the United States. He also said that protectionist sentiment and scepticism toward globalisation have been growing across political and economic circles right now, reflecting deeper structural issues in the US, when it comes to domestic distribution challenges and shifts in the global economic landscape.

Cheng doesn’t see trade conflicts disappearing in the near term, and Washington’s current protectionist approach should be seen as a result of weakness, confusion and fear. Stressing that these trends indicate a fundamental transformation in the global trade and economic landscape, he called for greater emphasis on multilateralism, international cooperation and respect for global institutions such as the WTO.

Wong Kan Seng, former deputy prime minister of Singapore, said that rising trade tensions, supply chain reconfigurations and increasing government interventions (subsidies and investment screening) are driving up costs and fragmenting global trade in the process. Such shifts will only make things like duplicated supply chains, higher trading costs and conflicting regulatory regimes the new normal, thereby placing greater pressure on smaller and emerging economies.

However, according to Robert Koopman, former chief economist of the World Trade Organisation and Hurst Senior Professorial Lecturer at American University, China has shown strong resilience and adaptability amid the ongoing global trade warfare and has started diversifying its portfolio.

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Malaysia’s Investment, Trade, and Industry Minister Datuk Seri Johari Abdul Ghani stated that the US-Malaysia Agreement on Reciprocal Trade (ART) no longer holds any legality. He further claimed the deal was not suspended or paused, but terminated.

“It is not on hold. It is no longer there, it’s null and void,” Johari said, as reported by the New Straits Times. He further told reporters that if tariffs were imposed and legitimised based on a trade surplus, authorities should clearly specify the industry involved instead of implementing the mechanism on a blanket basis.

The ART was signed on the sidelines of the 47th ASEAN Summit in Kuala Lumpur in October 2025, with Donald Trump and Prime Minister Anwar Ibrahim as signatories. The agreement covered roughly 12% of Malaysia’s exports to the United States, offering improved market access for Malaysian exporters while making American products more competitive for Malaysian businesses. Under its terms, the world’s largest economy maintained a 19% reciprocal tariff on most Malaysian imports, with carve-outs for select goods.

The voiding of the deal comes at a particularly fraught moment. In March, the Trump administration launched a sweeping Section 301 trade investigation, authorised under the Trade Act of 1974, targeting 16 trading partners, including Malaysia.

Section 301 allows Washington to impose additional tariffs on countries found to be engaging in unfair trade practices. Johari identified Malaysia’s key vulnerable sectors as electrical and electronics, oil and gas, plantation commodities including palm oil, rubber gloves, and other rubber-based goods.

He stressed that Malaysian exporters must ensure compliance with labour and environmental standards to minimise exposure.

Domestically, the development has triggered a political response. Opposition coalition Perikatan Nasional has called for a special parliamentary session to address the collapse of the agreement, with secretary-general Takiyuddin Hassan warning of potential damage to export sectors and supply chains.

Donald Trump, for his part, has warned of significantly higher retaliatory tariffs against any nation attempting to exploit the Supreme Court ruling to unpick existing trade arrangements, a threat that hangs directly over Kuala Lumpur’s decision.

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Speaking to the Emirates News Agency (WAM), Al Zeyoudi noted that while trade and investment relations between the Gulf major and the South American country continue to grow, the non-oil segment reached USD 373.6 million in 2025, reflecting trade growth of 3.2% compared to 2024 and more than three times its 2019 level.

The minister further added that the UAE is Ecuador’s largest trading partner in the Arab world and the African continent, accounting for around 30% of the Latin American nation’s total trade with countries in these regions combined.

The two countries have signed an Investment Promotion and Protection Agreement (IPPA) to create a transparent and stable environment for foreign direct investment (FDI) flows by reducing risks, protecting intellectual property rights, and establishing clear dispute resolution frameworks. The development reflects the strength of bilateral ties, apart from providing an effective platform for facilitating trade and investment and building networks. Further increasing its bilateral engagement with the UAE, Ecuador recently opened its trade office in Dubai to support cooperation with the Gulf nation’s private sector.

Al Zeyoudi affirmed that the CEPA will eliminate or reduce customs duties on more than 96% of traded goods and products between the UAE and Ecuador, contributing to improved market access for exports and strengthening supply chains.

“The agreement provides a trade and investment corridor linking the UAE with Latin American markets, while the UAE’s stature as a global trade hub will support the expansion of Ecuadorian companies into markets across Asia, the Middle East, and Europe. It will also increase investments in vital sectors, enhance private sector partnerships, and support cooperation among small and medium-sized enterprises,” the minister commented.

According to Dr. Thani Al Zeyoudi, the agreement’s scope is wide, benefiting clearly complementary sectors such as renewable energy, agriculture, logistics services, technology, food production, and advanced technologies like artificial intelligence (AI), advanced manufacturing, mining, education, capacity building, tourism, and hospitality.

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The situation has resulted in the nation playing smart by diversifying its trade portfolio. As part of this strategy, the Claudia Sheinbaum administration is looking to expand its trade ties with Saudi Arabia by exporting high-quality rice to the Kingdom.

As per the news daily Asharq Al-Awsat, Mexico has an export offer for three premium rice varieties that meet the Gulf nation’s highest international standards. Saudi Arabia, which imports limited quantities of Mexican rice, mainly for its culinary industry, has already consolidated its position as one of the world’s largest rice consumers, with per capita consumption averaging 45.77 kilogrammes annually, the highest among plant-based food products.

Around 70% of consumption consists of basmati rice, while total annual imports exceed 1.3 million tonnes.

According to Asharq Al-Awsat, the Saudi Ministry of Foreign Affairs has already received a request from the Mexican Embassy in Riyadh conveying the interest of the Mexican state of Nayarit in exporting premium rice to the Gulf nation’s market.

The embassy has also identified three rice varieties for export, like long grain “Super Extra Whole Grain Rice,” with a monthly supply of 120 tonnes; polished broad grain “Milagro Super Extra Rice” with a monthly capacity of 30 tonnes; and “Morelos” rice, a premium-grade variety.

Saudi Arabia, keeping in mind the strong demand for flavoured rice varieties within its territory and the broader Gulf region, encourages private-sector imports of Cambodian rice while maintaining a diverse bracket of supply sources, including India, Pakistan, the United States, and Egypt.

“Strong demand for flavoured rice varieties in Saudi Arabia and across the Gulf, combined with challenges such as rising shipping costs and climate-related disruptions, has occasionally led to price fluctuations. These factors have prompted the Kingdom to broaden its supplier base to ensure the availability of this commodity and maintain price stability. The government recently decided to increase Pakistani rice imports to account for 20% of total needs, reinforcing supply stability and food security,” reported Asharq Al-Awsat.

As per the latest forecasts, per capita rice consumption in Saudi Arabia could rise to around 50 kg annually in the coming years, up from the current 45.77 kg, underscoring the product’s central role in the Kingdom’s food industry.

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The development also aligns with the North African country’s efforts to streamline procedures, maximise the benefits of trade agreements, and protect local industry in line with international agreements.

The newly released data said, “Egyptian gold exports also saw a substantial increase, reaching USD 7.6 billion in 2025 compared to USD 3.2 billion in 2024, an increase of USD 4.4 billion,” while indicating that the largest markets for Egyptian non-oil exports in 2025 included the UAE, Turkey, and Saudi Arabia, as well as Italy and the United States.

The most important export sectors included building materials at USD 14.9 billion, followed by chemicals and fertilisers (USD 9.4 billion) and food industries (USD 6.8 billion). In October 2025, Egypt’s credit rating was upgraded by S&P Global to “B” from “B-,” while Fitch reaffirmed its “B” rating, citing progress in reforms and macroeconomic stability.

S&P said at the time that the upgrade reflects reforms implemented over the past period by the country, including the liberalisation of the foreign exchange regime, which boosted competitiveness and fuelled a rebound in growth. The announcement also coincided with Prime Minister Mostafa Madbouly’s observation, as the latter stated that both rating agencies’ decisions signal confidence in his government’s reform agenda and its expected returns.

In September, Egypt’s Ministry of Planning, Economic Development and International Cooperation reported that the North African country’s economy expanded 4.4% in fiscal year 2024/25, driven by a strong fourth quarter when GDP growth hit a three-year high of 5%. This reflects the impact of the more flexible exchange rate regime adopted since March 2024, which has helped stabilise the balance of payments, while also restoring investor confidence.

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Speaking at the Saudi-Japanese Ministerial Investment Forum 2026, Khalid Al-Falih explained that this makes the Asian country the Kingdom’s third-largest trading partner. The Gulf major has also firmly established itself as a very important partner for Japan from the viewpoint of the latter’s energy security, having been a stable supplier of crude oil for many years. Tokyo, for its part, has remained committed to supporting the Kingdom’s “Vision 2030” diversification agenda by sharing its industrial knowledge and advanced technologies.

“This trade is dominated by the Kingdom’s exports of energy products, specifically oil, gas, and their derivatives. We certainly look forward to the Saudi private sector increasing trade with Japan, particularly in high-tech Japanese products. As for investment, Japanese investment in the Kingdom is good and strong, but we look forward to raising the level of Japanese investment in the Kingdom. Today, the Kingdom offers promising opportunities for Japanese companies in several fields, including the traditional sector that links the two economies: energy,” Al-Falih said.

The minister went on to identify areas, including green and blue hydrogen, advanced industries, health, food security, innovation and entrepreneurship, where both the nations can form new chapters of collaboration.

During his speech, Al-Falih shed light on how the Kingdom’s pavilion at “Expo 2025” in Osaka achieved remarkable success, with the exhibition receiving more than three million visitors, reflecting the Japanese public’s interest in Saudi Arabia.

“The pavilion also organised approximately 700 new business events, several each day, including 88 major investment events led by the Ministry of Investment. Today, as we prepare for the upcoming Expo 2030, we look forward to building upon Japan’s achievements,” he said.

The minister further noted, “During our visit to Japan, we agreed to establish a partnership to transfer the remarkable Japanese experience from Expo Osaka 2025 to Expo Riyadh 2030. I am certain that the Japanese pavilion at Expo Riyadh will rival the Saudi pavilion at Expo Osaka in terms of organisation, innovation, and visitor turnout.”

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The discussions reviewed the current state of bilateral relations, recent developments in cooperation, and a range of issues of mutual interest, with a focus on strengthening the economic and trade partnership between the two countries.

On his part, El-Khatib highlighted the depth of historical and fraternal relations between the nations, while describing the meeting as part of ongoing coordination efforts that reflect both sides’ commitment to pursuing shared interests through partnership and integration. He further noted that talks covered areas such as digital trade and trade in services, while reaffirming the state’s support for initiatives aimed at attracting investment and improving the business climate.

The Egyptian Minister of Investment and Foreign Trade further remarked that textiles, engineering, and chemicals are among the priority sectors for cooperation in the coming period, stressing the need for both sides to translate opportunities into concrete outcomes through “practical steps.”

“El-Khatib also underscored the importance of building on the technical progress already achieved in negotiations over the draft comprehensive economic partnership agreement, calling for intensified joint efforts to resolve outstanding issues and finalise a balanced framework that supports investment flows, particularly in high-value-added productive sectors, while preserving the flexibility of trade regulations to enhance competitiveness in both economies,” reported the Arab Finance.

For his part, Al Zeyoudi reaffirmed the UAE’s commitment to strengthening its economic partnership with Egypt in a manner that serves the interests of both countries and reinforces their regional and international competitiveness.

While concluding, Al Zeyoudi expressed optimism about finishing technical discussions in the next phase and building on the progress made so far, noting that the move would open new avenues for trade and investment cooperation between Egypt and the UAE, apart from encouraging greater private sector participation within a transparent and integrated economic framework.

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As per the noted policy research centre, Yale Budget Lab, “Trump’s moves, aimed broadly at reviving a declining manufacturing base, lifted the average tariff rate to nearly 17% from less than 3% at the end of 2024, and the levies are now generating roughly USD 30 billion a month of revenue for the US Treasury.”

These disruptive moves brought world leaders scrambling to ⁠Washington seeking deals for lower rates, often in return for pledges of billions of dollars in American investments. While framework deals were struck with major trading partners like the European Union (EU), the United Kingdom, Switzerland, Japan, South Korea, ⁠Vietnam ‌and others, things have still remained pending with China and India, despite multiple rounds of talks, both at the leadership and trade mission levels. For India, the tariff amount has been the highest, 50%, including the penalty for buying Russian crude and weaponry, a move which geopolitical analysts dubbed as an arm-twisting one to make New Delhi fall in line with Washington’s line on the topic of Ukraine.

However, after months of decline, India’s exports to the United States rose 22.61% to USD 6.98 billion in November, while the Narendra Modi government has been focussing on aggressive policy reforms on the domestic front, apart from diversifying its export basket by signing trade deals with United Kingdom, Oman and New Zealand, to absorb the blows given by the 50% tariffs from Uncle Sam. All eyes will be on the fourth quarter, as the South Asian country’s bilateral talks with both the EU and the United States progress at a steady pace, with New Delhi anticipating the high-stakes deals to be signed by the end of March.

The EU got criticised by many for its deal for a 15% tariff on its exports and a vague commitment to big American investments. The then French prime minister Francois Bayrou even ⁠called it an act of submission and a “sombre day” for the bloc, while other bloc partners shrugged the arrangement as the “least bad” deal on offer.

“Since then, European exporters and economies have broadly coped with the new tariff rate, thanks to various exemptions and their ability to find markets elsewhere. French bank Societe Generale estimated the total direct impact of the tariffs was equivalent to just 0.37% of the region’s GDP,” noted Reuters, as it added further, “meanwhile, China’s trade surplus defied Trump’s tariffs to surpass USD 1 trillion as it succeeded in diversifying away from the US, moved its manufacturing sector up the value chain, and used the leverage it has gained in rare earth minerals – ⁠crucial inputs into the West’s security scaffolding – to push back against pressure from the US or Europe to curb its surplus.”

The tariff warfare took a limited toll on the American economy, as the latter suffered a modest contraction in the first quarter amid a scramble ‍to import goods before tariffs took effect, but quickly rebounded and continues to grow at an above-trend pace thanks to a massive artificial intelligence (AI) investment boom, along with resilient consumer spending. The International Monetary Fund (IMF), in fact, twice lifted its global growth outlook in the months following Trump’s “Liberation Day” tariffs announcement in April 2025 as uncertainty ebbed and deals were struck to reduce the originally announced rates.

“And while the United States’ inflation remains somewhat elevated in part because of tariffs, economists and policymakers now expect the effects to be milder and more short-lived than feared, with cost sharing of the import taxes occurring across the supply chain among producers, importers, retailers and consumers,” Reuters reported.

A big unknown for 2026 is whether many of Trump’s tariffs will be allowed to stand, as a legal challenge has been registered to the Supreme Court, to counter the novel premise for what the Republican branded as “reciprocal” tariffs on goods from individual countries and for levies imposed on China, Canada and Mexico (tied to the flow of fentanyl into the US). The case was argued before the court in late 2025, and a decision is expected in early 2026.

The Trump administration insists it can shift to other, more-established legal authorities to keep tariffs in place should it lose. But those will likely be limited in scope, and a loss at the Supreme Court level might prompt the administration to renegotiate the deals struck so far, thereby ushering in a new era of uncertainty about where the tariffs will end up.

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In a meeting held to follow up on economic, trade, and investment cooperation between the two countries, the senior official further explained that significant opportunities exist to expand Egyptian exports to the American market, given the strong trade capabilities of companies in various sectors. The meeting was attended by the new Commercial Counsellor of the United States, Paul Oliva, along with Jennifer Patterson, responsible for the trade and investment portfolio at the Economic Office of the US Embassy in Cairo.

The minister’s comments align with the fact that trade between Egypt and the world’s largest economy reached the USD 8.6 billion mark in 2024, including USD 2.5 billion in Egyptian exports. It also aligns with the North African country’s trade deficit, narrowing 16% to USD 26.3 billion till October 2025, supported by strong non-oil export growth.

The newly released statement from the bilateral meeting said, “El-Sherif emphasised that the meeting comes at a time when Egyptian-American relations are witnessing growing momentum and noticeable development across various economic and investment fields. He noted the mutual aspiration to capitalise on this momentum to increase trade volumes and boost US investments in the Egyptian market. El-Sherif also noted that US investments in Egypt reached USD 9.44 billion, with an American equity contribution of USD 2.47 billion as of the end of February 2025. These investments are spread across 2,016 companies operating in sectors such as finance, industry, services, and construction, as well as Information and Communications Technology, tourism, and agriculture.”

El-Sherif further went on to highlight that the ECS is developing a detailed plan to boost and double trade and investment between the two nations in the near future. The strategy emphasises leveraging trade agreements, apart from highlighting key investment prospects in advanced technologies, renewable energy, supply chains, and export-driven sectors.

Another aspect of the plan is also to deepen ties between the business sectors of both nations, while encouraging more American firms to invest in Egypt, capitalising on the North African country’s strategic position and its unique advantages as a regional market.

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“I am really confident we can get that deal over the line,” she said at a forum held in the Saudi capital, adding that she was hopeful the agreement could be reached “very soon,” as reported by Arab News.

The trip will be the first by a British Finance Minister to the region in six years, and Rachel Reeves will hope to advance trade talks with the Gulf Cooperation Council (GCC), a six-nation group with which British administrations have sought to reach an agreement since the UK left the European Union (EU) in 2020.

Saudi Arabia’s Public Investment Fund (PIF) in 2024 purchased a 15% stake in London’s Heathrow Airport from Spanish construction company Ferrovial, and Britain said it expected more investment announcements in 2025.

In June, Riyadh Air, the new state-owned airline, announced its first flight would be to Heathrow and ordered 25 partly British-built Airbus A350 aircraft. Britain estimated that a GCC trade deal would contribute 1.6 billion pounds (USD 2.2 billion) a year to British economic output, or 0.06% of annual GDP. Prime Minister Keir Starmer travelled to Saudi Arabia and the UAE in 2024, as London aims for a quick conclusion of the trade deal.

Additionally, the United Kingdom’s “Export Finance Agency” will provide around 5 billion pounds in export credit to support British firms competing for contracts in Saudi Arabia. Several major UK-based companies, including Aberdeen Investcorp, Barclays, HSBC, and AI firm Quantexa, signed new agreements aimed at deepening their presence in the Gulf.

The FTA, once concluded, will strengthen strategic and economic ties between the UK and Gulf states, in addition to expanding trade in key sectors such as energy, manufacturing, and services. According to recent government statements, negotiators have made notable progress on areas including goods, services, and sustainability.

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