// TECH TRENDS //

Donald Trump’ s tariffs are changing the way global trade operates. Countries are all feeling varying effects from the charges, including the Middle East and North Africa region, and none more so than the small and medium enterprises( SMEs) in this region. Rana Abu Nemeh, Economist and Global Strategist, explores how the tariffs are affecting the MENA region and how SMEs are fighting back.

IT’ S A FULL-BLOWN TRADE QUAKE SHAKING THE VERY FOUNDATIONS OF A REGIONAL SECTOR ALREADY FIGHTING FOR CAPITAL, SCALE AND GLOBAL RELEVANCE.

HEN WASHINGTON SNEEZES,

MENA’ s small businesses catch the flu. That’ s the uneasy reality now playing out across boardrooms in Casablanca, factory floors in Sfax and investor pitch rooms in Riyadh. A new wave of US tariffs – aggressive in scale and unapologetically targeted – has thrown a wrench into the global trade gears, and it’ s the Middle East

A shock to the system

and North Africa’ s SMEs that are being crushed under the weight.

This isn’ t just an economic ripple effect. It’ s a fullblown trade quake shaking the very foundations of a regional sector already fighting for capital, scale and global relevance.

The US tariff regime, enacted in late March under the banner of‘ strategic economic resilience’, has imposed sweeping levies ranging from 10 % to 50 % on a range of non-energy imports. While MENA’ s oil and gas sectors remain largely insulated – thanks to decades of geopolitical entrenchment – it’ s the region’ s lesser-publicised but economically vital SMEs that are now exposed and vulnerable.

These are the businesses driving innovation in tech, fashion, food exports and industrial manufacturing. They represent over 90 % of active enterprises across the region and contribute significantly to employment and GDP diversification.

Yet in Washington’ s race to protect domestic jobs and reignite US manufacturing, MENA’ s entrepreneurial middle class has become collateral damage.

Not just a cost problem – a confidence crisis

In Jordan, garment exporters that had previously enjoyed duty-free access to US markets under the 2000 Free Trade Agreement now face tariffs of up to 20 %. In Tunisia, that figure rises to nearly 30 % – jeopardising what was one of the region’ s few non-energy trade surpluses. Even in the relatively resilient Gulf markets, a 10 % tariff on aluminium and petrochemicals has sent shockwaves through high-volume export models reliant on razor-thin margins.

The impact has been swift and merciless. Manufacturing costs are rising, logistics chains are breaking and investor sentiment is sliding.

“ Tariffs are just the tip of the spear,” said Nader Abboud, a logistics CEO based in Dubai.“ The real damage is in confidence. Investors are freezing deals. Banks are re-evaluating risk. And for SMEs, that’ s lethal.”

14 Intelligent SME. tech