Maghreb Faces Turmoil Amid US Tariffs, Regional Instability, and Economic Challenges
April 18, 2025
During a recent visit to Tunisia, Algerian Foreign Minister Ahmed Attaf voiced concerns regarding the regional instability exacerbated by these tariffs.
While the decline in oil prices and a weaker US dollar may allow Morocco, Tunisia, and Mauritania to reduce energy costs, Algeria and Libya are likely to face difficulties in adjusting their budgets.
The Sahel region poses an additional threat, with issues such as illegal migration and domestic crises in Tunisia and Libya further destabilizing the area.
The Arab Maghreb Union has largely failed as a cohesive political and economic entity, resulting in significant untracked costs and lost GDP growth.
The Maghreb region is currently grappling with increasing disarray, largely driven by the global trade crisis intensified by tariffs imposed by the United States.
Compounding these challenges, a potential recession in Europe threatens to severely impact the Maghreb's imports, tourism, and investment opportunities.
Recent tensions between Algeria and its Sahel neighbors have resulted in border incidents, leading to closed borders and heightened security concerns.
Since the establishment of the Arab Maghreb Union in 1989, member nations have pursued separate negotiations with the EU, contributing to further regional divisions.
These tariffs vary significantly across the region, with Morocco and Mauritania facing a 10% baseline, while Libya, Algeria, and Tunisia encounter much higher rates of 31%, 30%, and 28%, respectively.
This fragmentation leaves the Maghreb ill-equipped to address potential conflicts or prevent the spread of armed insurgencies from the south.
Algeria is particularly vulnerable, facing hostility from military juntas in the Sahel that are forming alliances with countries like Russia and Turkey.
As a result, Morocco could gain a competitive advantage in trade due to lower tariffs, while Tunisia's key exports, such as olive oil and automotive parts, may suffer.
Summary based on 1 source
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AW • Apr 18, 2025
Things do not bode well in the Maghreb | Oussama Romdhani | AW