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City Farm CEO: Limited impact from Trump tariffs on food exports

Businessmen Team economy 06 April 2025 02:00 PM
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City Farm CEO: Limited impact from Trump tariffs on food exports

Mahmoud Kamal, Chairman of City Farm Company, asserted that Egyptian products are well-positioned to withstand potential US customs duties by maintaining their high quality standards. He believes that current tariffs on Egypt are minor and can be circumvented through product improvement and cost reduction, emphasizing the US focus on quality.

He explained that Egypt's relatively low customs duties, compared to other countries, could attract companies facing higher tariffs to manufacture in Egypt and benefit from the lower rates.

Kamal highlighted that the company is pursuing its expansion plans and aims to leverage the quality of Egyptian products through its upcoming presence in European and Gulf markets. He believes these shifts present an opportunity for Egypt to strengthen trade ties with countries impacted by US tariffs, anticipating significant changes in global trade that could enable Egypt to play a larger role in international markets.

Notably, the new customs tariffs encompassed 184 countries, islands, and territories, excluding the 27 European Union members. This implies that most of the world faced these taxes, set at a minimum of 10%. Egypt's diverse exports to the United States saw a 12.3% increase in value during 2024, reaching approximately $2.247 billion, up from $1.992 billion in 2023, as reported by the Central Agency for Public Mobilization and Statistics' monthly foreign trade bulletin.

The most prominent Egyptian exports include clothing and its accessories valued at $739.9 million, followed by vegetables and fruits at about $113.8 million, then carpets and floor coverings at $123.3 million, in addition to iron and steel, which witnessed a notable decrease in its value.

Egypt's imports from the United States increased significantly to $7.6 billion during 2024, compared to $5.1 billion in 2023, a growth rate of 46.9%. These mainly included fuel and mineral oils, grains, aircraft and their parts, and some equipment and machinery.