In a move aimed at stabilizing the domestic steel market and balancing trade pressures, the United Arab Emirates (UAE) has extended its customs duty on steel and steel coils from 5% to 10%, effective until October 12, 2026. The policy, issued by the Federal Authority for Identity, Citizenship, Customs and Ports Security, follows a directive from the Ministry of Finance and comes at a time when global trade dynamics in steel continue to fluctuate.

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Key Data Overview

Parameter	Details
Customs Duty (Previous)	5%
Customs Duty (New)	10%
Effective Period	Until October 12, 2026
Foreign Trade Decline (2024)	6% drop in UAE iron & steel trade (WTO Report)
Comparable U.S. Tariffs (Steel/Aluminum)	25% – 50%
Impact on UAE Manufacturers	Minimal, due to low exposure to U.S. market

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Key Effects on Trade

1. Decline in Foreign Trade
   According to the World Trade Organization (WTO), the UAE’s foreign trade of iron and steel products decreased by 6% in 2024, indicating pressure on both exports and imports following the initial duty revision.
2. Increased Costs for Importers
   The duty hike from 5% to 10% directly raises the cost of imported steel. This may lead to higher project costs in construction, manufacturing, and infrastructure sectors that depend heavily on steel inputs.
3. Market Realignment
   Local producers may benefit from reduced foreign competition in the short term, but they also face challenges maintaining cost competitiveness amid rising input expenses and limited export flexibility.
4. Minimal U.S. Tariff Impact
   UAE steel manufacturers have reported limited exposure to U.S. tariffs, which range between 25% and 50%, as their primary export destinations lie within Asia and the Middle East rather than North America.
5. Long-Term Trade Implications
   With the increased duty extended until October 12, 2026, the UAE steel sector is likely to experience prolonged adjustments in pricing, sourcing strategies, and supply chain patterns.

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Conclusion

The UAE’s decision to sustain a higher customs duty on steel underscores its strategy to bolster domestic industry resilience while managing global trade fluctuations. However, the 6% dip in foreign trade volume signals that the policy’s protective measures may come at the cost of reduced import competitiveness and elevated downstream costs in the near term.

As global steel markets continue to evolve, stakeholders in construction, manufacturing, and logistics will closely monitor how these changes shape pricing structures and investment flows over the next two years.