Breakthrough US‑Egypt trade deal nears completion after tariff talks
The United States and Egypt are close to concluding negotiations following the announcement of tariffs on Egyptian goods by Donald Trump's administration, announced the U.S. ambassador during the Sunday economic forum in Cairo. Herro Mustafa Garg stated that the agreement would be a win for both sides.
"The (Egyptian) government has taken bold steps to remove long-standing non-tariff market barriers to American exports. This represents a significant win for both our countries, for our companies, and for our people," stated Herro Mustafa Garg, U.S. ambassador in Egypt, on Sunday.
The Washington representative announced the upcoming agreement during the economic forum in Cairo. Fifty-five investors from the U.S. participated, according to the Egyptian service Ahram Online.
Garg added that the expected trade agreement would be a "significant milestone" in unlocking new opportunities for American companies and supporting greater transparency and trade cooperation.
Donald Trump's administration, in its announcement of tariffs on almost the entire world, did not exclude Egypt. Goods from the Nile country were subjected to a 10-percent tariff.
Escalation between the U.S. and the EU
Meanwhile, an escalation occurred in talks between the United States and the European Union. Donald Trump on Friday stated that, in his opinion, the negotiations are not leading anywhere; therefore, he announced an increase in tariffs on EU goods to 50 percent, starting June 1st.
"We don't need further provocations, but serious negotiations," stated Germany's finance minister Lars Klingbeil in an interview for the Sunday edition of "Bild." He added that "American tariffs threaten the U.S. economy as much as they do the German and European economies."
EU Trade Commissioner Maroš Šefčovič responded to Trump's statement by asserting that the Union is acting "in good faith" towards a trade agreement with the U.S. based on respect and not threats.
Egypt's problems related to Houthi and Israel
Egypt's public finances are deeply affected by the suppression of trade movement in the Red Sea and the Suez Canal by Houthi rebels. The group is disrupting trade to pressure Israel to end the war in the Gaza Strip.
Revenues from the Suez Canal fell to 880.9 million dollars in the fourth quarter of last year, representing a significant decrease compared to 2.4 billion dollars the previous year.
The situation appears deadlocked. On one hand, Tel Aviv does not intend to lay down arms; on the other, the Houthis have been unable to hinder the American military. Despite Donald Trump announcing a large-scale operation against the rebels, it ended quickly due to inefficiency at high costs.
The Egyptian Suez Canal Authority (SCA) announced that from May 15, it is introducing a 15 percent discount on transit fees for large container ships. Promotions will be in effect for 90 days and apply to container ships with a net tonnage of at least 143,000 tons.
