Maghreb Faces Turmoil Amid US Tariffs, Regional Instability, and Economic Challenges

April 18, 2025
Maghreb Faces Turmoil Amid US Tariffs, Regional Instability, and Economic Challenges
  • 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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