Chart of the week: Oil, gas and metals drive US-Gulf trade ties, as Trump tariffs reshape global relations

Gulf states face lighter levies, with energy flows likely to continue with 10 per cent tariff

Trade between the US and the Gulf will probably remain anchored in energy, even as new tariffs reshape America’s relationships with countries around the world. The latest data shows oil, gas and metals continue to flow from the Gulf to the US, while the region's imports from the US remain modest by comparison.

The value of US imports from Gulf states increased in 2024. Mineral products, largely oil and gas, dominated the list, totalling $14.95 billion. Metals followed at $3.52 billion and chemicals were at $2.79 billion, while precious metals and machinery made up smaller but notable imports.

Gulf imports from the US followed a similar pattern in 2023, albeit on a much smaller scale. Mineral products again led the way at $16.25 million, followed by metals at $12.36 million and chemicals at $5.68 million. Precious metals and machinery imports were comparatively smaller.

The structure of the trade relationship highlights the continued strategic value of energy, even as Gulf states look to diversify their economies. Such initiatives include Saudi Arabia’s Vision 2030 and the UAE’s investments in renewables, technology and infrastructure.

Hydrocarbons continue to underpin the majority of trade, with the Gulf remaining a critical supplier for the US, not just in volume, but in ensuring the stability of the global energy market.

Gulf avoids heavy levies

On April 2, 2025, US President Donald Trump issued a sweeping executive order imposing a 10 per cent duty on goods imported into the country. That reached up to 50 per cent for products from nations with significant US trade deficits.

The Middle East, and Gulf states in particular, have been spared the worst. The UAE and Saudi Arabia will only be subject to 10 per cent tariffs, markedly lower than the duties imposed on Jordan (20 per cent), Algeria (30 per cent), Libya (31 per cent), Iraq (39 per cent) and Syria (41 per cent).