The Trump administration’s latest round of tariffs is expected to drive up global inflation, and Morocco will be among the countries feeling the ripple effects. While some sectors in Morocco may benefit from higher prices, economist Mohamed Jadri warns that rising costs for imported goods could put pressure on Moroccan consumers.
“We are reverting back to protectionist policies, nationalist policies, as countries look to protect their national interest within their borders,” Jadri said.
The new tariffs, announced by the US government this week, target a range of countries, including China, Japan, Cambodia, Mexico, Canada, and several European nations.
The increased levies are expected to raise prices worldwide, including in Morocco, as many goods pass through affected countries before reaching local Moroccan markets.
“These tariffs will lead to global inflation. Americans will pay more,” Jadri said. “In the end, consumers will be the ones hardest hit as they will pay more for products, unless local industries emerge to cover the gap.”
Despite inflationary concerns, Morocco’s economy could see some advantages under the new trade landscape. The country has a Free Trade Agreement (FTA) with the US, meaning Moroccan products are subject to only a 10% tariff—far lower than the 20%, 30%, or 40% rates imposed on other nations.
“Moroccan producers, including extraction industries such as phosphate and textiles, should make the most out of the current economic conditions to boost exports to the US,” Jadri advised.
Another key factor is Morocco’s growing appeal as an investment hub for Chinese companies. With US tariffs making direct exports from China more expensive, Chinese manufacturers are increasingly looking to set up operations in Morocco to take advantage of its trade agreements.
“Chinese companies are looking to invest in Morocco to benefit from Morocco’s trade relations with the US Today, electric car factories in Morocco, or textile factories, the one that was signed recently, will benefit from this low 10% levy on imports [into the US],” Jadri explained.
While Trump’s tariffs could provide opportunities for Moroccan exporters and foreign investors, the Moroccan economy may still experience inflationary pressure due to rising import costs. Jadri warns that certain goods arriving in Morocco through tariff-affected countries will see price hikes, impacting local businesses and consumers.
“Unfortunately, the tariffs could also cause prices of some products that Morocco imports to go up, given that some products coming to Morocco go through several countries,” he said.
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