Topic Summary

1. Increased Cost of Imports

The introduction of new US tariffs in 2025 will elevate the cost of American goods entering the UAE market. UAE businesses importing from the US may face higher expenses, potentially leading to increased retail prices for consumers and compression of profit margins.

2. Supply Chain Disruptions

Tariffs often compel companies to reevaluate supply chains. UAE firms reliant on US suppliers might experience delays or need to seek alternative sourcing options from different markets, impacting operational continuity and inventory management.

3. Competitive Shifts in Regional Markets

The tariffs could affect the competitiveness of UAE businesses exporting to the US if they depend on US components. Conversely, tariffs on US products may provide local and regional manufacturers a comparative advantage, enabling them to capture greater market share.

4. Investment and Trade Strategy Adjustments

With the changing tariff landscape, UAE businesses may revisit their investment and trade strategies, focusing on diversification beyond the US market. This could involve expanding partnerships with other global economies to mitigate tariff-induced risks.

5. Regulatory Compliance and Administrative Costs

Navigating the new tariff regulations will require enhanced compliance measures. UAE companies must allocate resources to ensure adherence to US trade laws, possibly incurring additional administrative costs and necessitating expert consultation.

In 2025, the United States implemented a new wave of tariffs on global imports — including key goods from the United Arab Emirates. These measures are now fully in effect, with Dubai-based exporters already feeling the impact across metals, energy components, and electronics.

If your business is part of the Dubai exports USA supply chain, now is the time to understand how these changes in tariff policy in the UAE could impact your pricing, compliance, and market access.

Overview of the New US Tariffs on UAE Goods

Under Section 232 of the U.S. Trade Expansion Act, tariffs on UAE-origin steel and aluminium were increased to 50% in June 2025. Most other goods from the UAE now face a baseline 10% import tariff, as part of sweeping U.S. global trade revisions.

For UAE exporters, this means:

  • Increased US import tax for the UAE on specific materials such as steel, aluminum, and solar components
  • Expanded reporting and compliance checks at US ports
  • Potential disruptions or added costs for businesses supplying American companies

These changes apply regardless of whether the goods are shipped from the mainland or a free zone in Dubai, such as Meydan Free Zone.

Industries Most Affected by the 2025 US Tariffs

The following sectors have been identified as key areas impacted by the tariff on goods in the UAE update:

  1. Metals and Industrial Materials
    Aluminum and steel exports are now subject to higher import duties, especially if they originate from state-subsidised producers or countries under scrutiny.
  2. Clean Energy and Solar Components
    Tariffs have been introduced on solar panels and photovoltaic cells, even when assembled or exported via the UAE.
  3. Technology and Electronics
    Some consumer electronics and raw materials used in manufacturing are now facing compliance inspections and duty adjustments.
  4. Plastics and Industrial Inputs
    Tariffs may also affect components made from polymer and chemical bases — sectors where the UAE is a global supplier.

Impact on Dubai-Based Exporters and Free Zone Businesses

While mainland and free zone companies operate under different business structures, both are affected by the US import tax and UAE decisions when shipping goods to the United States.

For Meydan Free Zone companies:

  • Goods manufactured or processed within the zone may still be subject to US tariffs if they meet specific customs thresholds or contain restricted materials
  • Companies must ensure full documentation, including Certificates of Origin and compliance with rules of origin for tariff exemption eligibility
  • Value-added processing may reduce tariff exposure, depending on how goods are assembled or modified in the UAE

If your business engages in trade between the UAE and the USA, this is a critical time to evaluate your supply chain, contracts, and cost structures.

Steps UAE Exporters Can Take to Stay Competitive

To mitigate the impact of increased tariffs, companies should consider:

  • Exploring alternate markets to diversify exports beyond the United States
  • Reviewing materials and suppliers to reduce exposure to tariffed goods
  • Reassessing pricing and contracts to factor in new customs duties
  • Working with freight and customs advisors to improve clearance and reduce compliance risks
  • Monitoring UAE and US government trade updates for changes in tariff schedules or exemptions

With tariffs now active, UAE exporters must move quickly to adjust pricing models, supplier relationships, and freight strategies. Meydan Free Zone members can leverage Meydan Plus for trade advisory, customs planning, and compliance documentation — critical in avoiding delays and minimising duty costs.

Why Businesses Should Monitor UAE–US Trade Policy

The UAE and the US maintain strong bilateral trade relations, and despite temporary barriers, long-term cooperation remains robust.

Understanding the tariff policy in the UAE helps businesses:

  • Adapt early to policy shifts
  • Maintain transparent logistics and customs records
  • Protect profit margins
  • Secure long-term relationships with buyers in North America

FAQs

1. Which UAE products are affected by the 2025 US tariffs?

Primarily aluminum, steel, solar equipment, and certain electronics. The complete list is updated by the US Trade Representative (USTR).

2. Do free zone exports face the same duties?

Yes. If the end destination is the US, all UAE-origin goods must comply with US customs regulations, regardless of their zone of origin.

3. How can Meydan Free Zone help with trade compliance?

Through Meydan Plus, businesses receive customs code registration, trade advisory, and support with logistics documentation.

4. What is the impact on trade volume between the UAE and the USA?

While tariffs may temporarily reduce shipments in some sectors, overall trade remains strong due to diversified exports and ongoing demand.

5. Can I reduce my exposure to the US import tax and UAE policies?

Yes. Through better sourcing, processing changes, and customs planning, many businesses can adjust their product classification or target alternate markets.

6. Is there any government support for affected exporters?

The UAE’s Ministry of Economy and related entities may offer updates or trade assistance for impacted industries. Meydan Free Zone provides additional guidance to its members.

7. Are there exemptions available under trade agreements?

Exemptions are limited. Businesses must demonstrate a qualifying origin, transformation, or documentation to be considered.

8. What happens if goods are rejected at US customs?

Goods may be held, fined, or returned. Ensuring pre-clearance and valid documentation reduces this risk.

9. How do I stay updated on further tariff changes?

Monitor updates from the USTR, UAE customs, and international trade bodies. Meydan Free Zone also shares trade bulletins with its members.

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