Trump's Tariff Policy and Its Potential Impact on Morocco

Thursday 03 April 2025 - 11:00

By: Zahouani Ilham

Trump's Tariff Policy and Its Potential Impact on Morocco

The United States' economic partners are closely watching President Donald Trump's announcement on April 2, 2025, regarding the imposition of stricter tariffs on imports from various countries. However, will Morocco be affected by this decision?

According to economist Mohamed Benayad, an expert in foreign trade, Morocco is not currently subject to these new tariffs. He emphasized that this decision will not directly impact Moroccan imports.

The Free Trade Agreement

Benayad explained to SNRTnews that Morocco and the United States have been bound by a Free Trade Agreement (FTA) since 2006. Any new tariff impositions would require a revision of this agreement.

The FTA was signed on June 15, 2004, in Washington and became effective on January 1, 2006. It covers agricultural and industrial products, as well as trade in services, labor policies, environmental regulations, government procurement, and intellectual property rights.

The agreement initially eliminated tariffs on more than 95% of industrial and consumer products and phased out duties on most remaining goods over a nine-year period. Additionally, it ensures access to service markets and offers protections for U.S. investors in Morocco.

In the agricultural sector, 56% of Moroccan agricultural products had tariffs removed, with a gradual exemption process extending over 18 years for sensitive products.

During the eighth session of the Joint Committee overseeing the FTA, held at the U.S. Department of Commerce last summer, Moroccan Minister of Industry and Trade Ryad Mezzour highlighted priority issues, particularly market access and overcoming non-tariff barriers. He emphasized Morocco's potential as a gateway for U.S. businesses into Africa and its strategic role in supply chain development across key sectors such as automotive, renewable energy, agriculture, healthcare, and financial technology.

Indirect Effects of the Tariffs

Some experts argue that certain Moroccan sectors could be indirectly affected by these tariffs, particularly industries reliant on U.S. raw materials and technology. Increased tariffs could raise production costs for Moroccan businesses using these inputs.

However, Benayad pointed out that companies operating in the electronic components and technology sectors are primarily U.S.-owned subsidiaries in Morocco, meaning their interests would not necessarily be in conflict with the new tariffs.

Regarding the proposed 25% tariff on automobile imports and spare parts, Benayad stated that this measure would not significantly impact Morocco, as the country's automotive industry is primarily focused on the European market rather than the U.S.

Trade Balance and Imports

In 2023, trade between Morocco and the United States exceeded 73 billion dirhams, with Moroccan exports totaling 12.69 billion dirhams and imports reaching 60.31 billion dirhams.

Despite a rise in U.S.-Morocco trade in 2022, Moroccan imports benefiting from the FTA declined by 1.2% in 2023, reaching 31.2 billion dirhams. The FTA accounted for 15% of Morocco’s total free trade-related imports and 51.7% of imports from the U.S.

The trade deficit between Morocco and the United States widened to 47.6 billion dirhams in 2023, compared to 40.4 billion dirhams in 2022.

Trump’s new tariff policy is expected to be officially announced on April 2 at 4:00 PM local time (8:00 PM GMT) during a ceremony at the White House, shortly after the closing of the New York Stock Exchange.