The United Arab Emirates and the United States have agreed to initiate talks toward a bilateral trade agreement aimed at easing tariffs on Emirati steel and aluminum exports. According to sources cited by Reuters, the negotiations were proposed during former President Donald Trump’s visit to Abu Dhabi last month. These discussions follow the imposition of significant tariffs during Trump’s prior administration, which affected UAE exports with a 10% general tariff and an additional 50% duty on steel and aluminum products.

The UAE, while predominantly an oil exporter, considers steel and aluminum strategic non-oil exports. In 2024, it ranked as the second-largest exporter of such products to the US, supplying 8% of America’s total consumption. Despite the early momentum, US officials reportedly favor a limited trade pact rather than a full free trade agreement. Nevertheless, the anticipated deal could be branded under the Comprehensive Economic Partnership Agreement (CEPA), aligning with the UAE’s other international trade accords.

The UAE remains the US’s largest trading partner in the Middle East. Bilateral trade reached $34.4 billion in 2024, with the US holding a substantial $19.4 billion surplus, according to official data. The timeline for the talks to begin has yet to be confirmed.