How Trump’s Tariffs Could Mean Lower Prices and More Jobs in the UAE

The US-China Trade War: A Shift in Global Supply Chains

The US recently imposed a staggering 245% tariff on Chinese goods, making direct shipments from China to the US financially unsustainable. While this may spell trouble for traditional trade routes, the UAE is emerging as a major beneficiary of this shift.

UAE’s Growing Role as a Global Trade Hub

Thanks to its strategic location, tax-free zones, and robust logistics infrastructure, the UAE is well-positioned to become a key player in global re-exports. A SixthFactor Consulting study shows 77% of finance-savvy Emiratis believe the UAE’s importance in global trade will rise. And 82% expect a surge in goods passing through the country.

More Jobs and More Opportunity

As Chinese manufacturers look to bypass US tariffs, many are exploring UAE-based assembly plants and distribution hubs. Free zones offering 0% corporate tax and a 10% export tariff to the US (compared to China’s 245%) make the UAE an attractive option. This could create new jobs across logistics, manufacturing, warehousing, and support services.

Consumer Benefits: Lower Prices, More Choice

The trade disruption is causing a buildup of surplus stock in China. With US buyers pausing orders, Chinese suppliers are looking to the Middle East—mainly the UAE—as an alternate market. Retailers here may see lower sourcing costs, leading to discounts on electronics, apparel, and home goods. According to the same SixthFactor study, 42% of Emiratis expect prices to drop and 33% anticipate more variety.

Demand for Warehousing on the Rise

Chinese businesses are already taking action—renting warehouse space, storing goods, and preparing for re-export from the UAE. This is creating a spike in demand for commercial and industrial properties, a trend DreamDwell Properties is already witnessing firsthand.

Real Estate Implications: A Golden Opportunity

As global supply chains re-route, the UAE’s industrial property market is heating up. Chinese exporters and logistics firms are seeking reliable spaces for operations. For investors and property owners, this presents a long-term growth opportunity in warehouse leasing and commercial development.

Strategic Patience with High Stakes

While the outlook is optimistic, many traders remain cautious. Flooding the market too quickly could drive down prices, but waiting too long might mean missed opportunities. Those with solid networks and good timing are expected to gain the most.

The Long-Term Impact: UAE as a Trade and Manufacturing Base

The UAE is not just a temporary detour in the trade war—it’s becoming a key part of the new supply chain model. As companies shift operations here, the UAE stands to benefit across sectors including retail, e-commerce, shipping, and manufacturing.