Morocco Eyes Trade Opportunity as Trump Tariffs Hit EU, China Harder

In 2004, Morocco signed a free trade agreement with the United States. An advantage for the country that could benefit from the duties imposed on the EU and Asian powers. "Customs duties are an opportunity for Morocco to attract investments from foreign investors wishing to export to the United States, given the relatively low rate of 10%," said a former government official, speaking on condition of anonymity, to Reuters.

However, the situation is not so rosy for Morocco, as the Trump administration could eye big investments from China like the $6.5 billion (€5.93 billion) project by Gotion High Tech to build Africa’s first gigafactory. According to Rachid Aourraz, an economist at the Moroccan Institute of Political Analysis (MIPA), the kingdom’s aerospace and fertilizer industries could also be affected.

"While the direct impact seems limited given that the United States is not a major market for Moroccan exports, the consequences of tariffs and the specter of recession could hamper Moroccan economic growth," he said.

It should be noted that in 2022, Moroccan exports to the United States reached 16.3 billion dirhams, with mineral or chemical fertilizers (3.35 billion dirhams, or 20.8% of the total) and the automotive industry (11.4%) as the main items.