US efforts to decouple from China and the imposition of increasing tariffs on allies indicate a significant restructuring of global supply chains.

To mitigate risks, efforts to de-risk regional payment systems from the US dollar are essential, as the dollar still accounts for 50% of global transactions and 83% of trade finance.

Countries such as Bahrain, Egypt, Jordan, Lebanon, Morocco, and Tunisia are particularly vulnerable, facing $22 billion in non-oil exports at risk from these tariffs.

In response, Asian and Arab economies, especially GCC nations, must focus on restructuring their trade and financial landscapes to reduce reliance on the US.

Trumponomics encompasses tariffs, trade wars, and protectionist policies that prioritize national security over free market principles.

In light of these developments, the IMF has downgraded global growth forecasts to 2.8% for 2025, with the Mena region's growth projected at only 2.6%, largely due to US tariff hikes.

The GCC aims to secure trade agreements with ASEAN and finalize a free trade agreement with China as part of its strategic priorities.

Key strategies for GCC nations include establishing regional trade agreements and deepening financial market integration to better manage exposure to US financial shocks.

The rise of 'Trumponomics' has significantly increased global trade tensions and economic volatility, threatening the established rules-based international order.

As global supply chains shift towards Asia, the digital yuan is expected to gain significance in non-dollar trade financing, although China must enhance its financial markets for the yuan to achieve reserve currency status.

The US currently dominates global equity markets, accounting for nearly 50% of market capitalization, highlighting the urgent need for GCC economies to diversify their financial connections.

Moreover, weaker oil demand and OPEC+ production increases could lower oil prices, further straining the economies of oil-exporting nations.