In a move that has sparked controversy, U.S. President Donald Trump decided to impose a 10% tariff on several Arab countries, including Lebanon. While it was expected that these tariffs would target nations with substantial trade relations with the United States, Lebanon's inclusion on the list has raised questions about the potential impact on the Lebanese economy and whether the decision truly warrants such attention.

Why Lebanon?

Lebanon is not one of the United States' major trading partners, with trade between the two countries being relatively insignificant compared to other nations. Lebanese exports to the U.S. are estimated at around $200 million annually, a modest figure in the overall trade balance. Economist Khaled Abdel Samad told Annahar that most of these exports consist of processed food products such as olive oil, tahini, and pickles, as well as some agricultural products like apples and certain vegetables and fruits. However, the quantities are limited due to the distance and the challenges of shipping fresh goods.

On the flip side, Lebanese markets are more reliant on U.S. imports, which means the trade balance between the two countries is skewed in favor of the United States. As a result, the imposition of tariffs on Lebanese products does not appear to be based purely on economic considerations but may be part of a broader trade policy targeting multiple countries, regardless of the size of their trade with the U.S.

Is it worth all this attention?

When you look at the scale of Lebanese exports to the United States, it becomes clear that the actual impact of these tariffs will be minimal. Even with the 10% tariff, Lebanon does not export large quantities to the U.S. market, hence, as Abdel Samad pointed out, "the effect on the Lebanese economy will be minimal, if not negligible."

"Lebanese exporters have alternatives, whether through European or Arab markets, which may not impose similar restrictions on Lebanese goods. Furthermore, Lebanese products, especially food items, are largely aimed at Lebanese and Arab expatriates in the U.S., who may continue purchasing them even with a slight price increase," he added.

In conclusion, while the imposition of tariffs on Lebanon might seem economically insignificant, it is part of a broader trade strategy aimed at several countries, regardless of their trade volume with the United States. Given the limited scope of Lebanese exports to the U.S., these tariffs are unlikely to have a significant impact on the Lebanese economy, making the question of their justification a reasonable one. Ultimately, the decision may carry more political weight than economic consequences, aligning with Trump's broader protectionist policies on the global stage.

This is an English adaptation of an Arabic article published by Annahar.