Tariffs Failed in the Middle East—America Shouldn’t Make the Same Mistake
When economic anxiety strikes, protectionist politicians reach for the same dusty playbook: Slap tariffs on imports, invoke the national interest, and promise that “local industries” will rise like a phoenix from the ashes of the markets the government just torched. The approach sounds pragmatic—even patriotic—but in practice, especially in the Middle East, it has been a spectacular failure. The United States should not follow the same dead-end road.
Take Egypt: In 2016, facing fiscal pressure and public dissatisfaction, the government raised tariffs on hundreds of imported goods—everything from electronics to household furniture. The stated goal was to protect domestic industries and reduce reliance on foreign goods. The outcome? Inflation soared, local industries remained stagnant, and Egyptian consumers were left paying more for lower-quality products. The government hoped tariffs would nurture innovation; instead, they strangled competition and punished ordinary people.
In Iraq, where the state has tried to rebuild its shattered economy after years of conflict, officials implemented tariffs to supposedly boost “national production” and replenish government coffers. But in a country where corruption runs deep and borders are porous, the policy only incentivized smuggling and rent seeking. Goods flowed illegally across borders while customs officials took their cut. Meanwhile, consumers bore the cost, and genuine economic growth never came. Tariffs there didn’t protect industries—they protected the corrupt.
Contrast that with nations like the United Arab Emirates and Qatar, which have kept tariffs relatively low and instead focused on building knowledge economies. These countries understand a simple truth: You don’t get prosperity by putting up walls. You get it by opening doors—to talent, capital, and innovation. Even Saudi Arabi
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