Saudi Arabia shook by US tariffs, faces the biggest decline in 5 years

The stock market of Saudi Arabia witnessed its largest one-day decline in five years, declining close to 7% following the unveiling of fresh US tariffs by President Donald Trump. The Saudi index fell over 800 points, and the state-owned news channel Al-Ekhbariya described it as the largest five-year one-day decline.

Global impact of Trump's tariffs

The decline is not confined to Saudi Arabia alone, as other Middle Eastern economies like Qatar, Kuwait, and Egypt have also reported considerable losses. Qatar's share stock declined 4.2%, Kuwait's market declined 5.7%, and Egypt's EGX30 shares fell by 3.3%. The global outburst of dismay regarding Trump's tariffs has resulted in a sharp decline in global markets, with even the allies closest to the US like Israel and Saudi Arabia experiencing.

Saudi Aramco takes a hit

Saudi petroleum giant Aramco was among the affected companies, with its stock falling 6.2% - the biggest decline since the start of the pandemic.The firm's market capitalisation lost more than 340 billion riyals (about $90 billion), which added to the total loss of more than half a trillion Saudi riyals ($133 billion) in the Saudi market.

International markets in turmoil

The effect of Trump's tariffs is being experienced around the world, with global markets running towards recession. The chain reaction of the tariffs has resulted in huge losses to major sectors, and approximately 50 countries have reached out for a meeting on the tariffs. Israeli Prime Minister Netanyahu has even visited Washington to negotiate the tariffs, reflecting the global concern about the economic impact on the world.