New Delhi, 7 April 2025: US President Donald Trump’s new tariff policy has created a stir in the global markets. While this policy is pushing the world economy towards recession, America’s close allies have also not been able to escape its impact. The massive drop in the markets of countries like Saudi Arabia and Israel has exposed the seriousness of this crisis. On Sunday, the Saudi Stock Exchange recorded its biggest one-day drop in five years, which has given sleepless nights to investors and economists.
Tariffs hit Saudi market

According to a report by Saudi Arabia’s state-run news network Al-Ekhbariya, the Saudi stock index fell by nearly 7 per cent, equivalent to a loss of more than 800 points. Terming this decline as the biggest daily loss in the last five years, the agency said that Trump’s new tariffs have affected key sectors of the Saudi economy. This includes the globally renowned oil company Saudi Aramco, whose shares fell by 6.2 percent. This decline is being described as the biggest since the beginning of the Covid pandemic.

The financial daily Al-Eqtisadiyya explained this loss in more detail. According to the newspaper, the total loss of the Saudi market on Sunday was more than half a trillion Saudi riyals (about $ 133 billion). Of this, Aramco alone suffered a loss of 340 billion riyals (about $ 90 billion). Al-Ekhbariya said in its analysis, “Trump’s tariffs have shaken global markets, and Saudi Arabia has also been hit by it. There is a serious threat to the oil exports and trade flows of Gulf countries.”

Uneasiness at the global level
The Trump administration has imposed a basic tariff of 10 percent on all imports, including allies like Saudi Arabia and Israel. Some countries have been imposed much higher rates, such as 28 percent on Tunisia and 20 percent on Jordan. The impact of this policy is not limited to Saudi Arabia only. Markets in other Middle East countries also witnessed a decline. Qatar’s stock market fell by 4.2 percent, in which big names like Industries Qatar and Qatar National Bank suffered losses. Kuwait’s market fell by 5.7 percent and Egypt’s EGX30 index fell by 3.3 percent. These figures present a picture of the emerging crisis in global trade.

Israeli Prime Minister Benjamin Netanyahu has reached Washington to discuss this issue. An American official said on the condition of anonymity, “About 50 countries have contacted us regarding the tariff. This policy is creating problems not only for trade rivals but also for our allies.” Increasing pressure on oil prices

Although energy products like oil and gas have been exempted from tariffs, experts believe that the reduction in global demand and trade instability will have an indirect impact on oil producing countries. Economic analyst Priya Mehta says, “Saudi Arabia is trying to diversify its economy in areas other than oil. But at such a time, this market instability can become a challenge for ambitious goals like Vision 2030.” Oil prices have already fallen below $90 per barrel, which is less than the level required for the Saudi budget.

Investors’ concerns and fears about the future

Saudi Aramco CEO Amin Nasser recently said, “We have the capacity to supply three million barrels of additional oil to the market. But in the current situation, we have to be cautious.” Experts estimate that if this crisis continues for a long time, Saudi Arabia may have to cut down on its mega projects. Al-Iqtisadiah wrote, “A 30 percent reduction in Aramco’s dividend has already been announced. This impact of tariffs will also affect the government treasury.”

Conclusion
Trump’s tariff policy has pushed Saudi Arabia and the Middle East markets into an uncertain phase. Oil-dependent economies are struggling with this crisis, and investor confidence is wavering. In the coming days, everyone will be watching America’s next move. Is this tariff policy merely a pressure strategy or the beginning of a global trade war? This question is flashing in everyone’s mind. Disclaimer: This article is for informational purposes. Consult an expert before investing.