Other Publications

policy pulse

Following the enactment of a sweeping new U.S. tariff regime on April 5, 2025, Egypt has emerged as a premier "Tariff-Safe Zone" for global trade and investment. While traditional manufacturing powerhouses like China, Vietnam, and the EU face prohibitive duties ranging from 20% to 145%, Egypt’s exports to the United States are subject to a flat, competitive rate of only 10%. This favorable positioning, supported by a projected real GDP growth of 6% in 2026 and a stable exchange rate of EGP 54/USD, makes the country a resilient alternative for multinational firms seeking to bypass global trade distortions. Leveraging its strategic control of the Suez Canal and a massive talent pool of 700,000 annual graduates, Egypt is rapidly scaling its industrial capacity in key sectors. The apparel industry is already projecting a 25-30% growth in U.S. exports with a long-term target of $12 billion, while the engineering and automotive sectors are attracting significant relocation interest from manufacturers in Japan, China, and Turkey. By offering a secure, low-tariff base for production, Egypt is uniquely positioned to capture shifting global market shares and drive long-term strategic economic gains.