As of July 2025, the trade relationship between the United States and Saudi Arabia is complex, characterized by both existing strong ties and the looming impact of new U.S. tariff policies.

New US Tariffs Affecting Saudi Arabia:

While specific reciprocal tariff rates for Saudi Arabia haven't been explicitly detailed in the same way as some other countries, the U.S. administration has signaled a broad approach to tariffs:

• Reciprocal Tariffs: The U.S. has been sending letters to various countries, including close allies, to inform them of reciprocal tariff rates that will come into effect on August 1, 2025. These tariffs are part of a strategy to address what the U.S. views as imbalanced trade relationships. The rates can vary significantly, ranging from 10-20% on the lower end to 60-70% on the higher end, depending on the outcome of bilateral negotiations.

• Copper Tariff: A notable new tariff announced is a 50% tariff on copper imports, effective August 1, 2025. While not exclusively targeting Saudi Arabia, this will impact any copper imports from the Kingdom. This tariff is justified by the U.S. as a measure to rebuild its domestic copper industry and enhance national security.

• "Anti-American BRICS Policies" Surcharge: The U.S. has warned that any country aligning with "Anti-American BRICS policies" may face an additional 10% tariff. Saudi Arabia is a member of the BRICS group, and this potential surcharge could add another layer of complexity to their trade relations.

Status of Deals and Agreements:

Despite the new tariff landscape, the U.S. and Saudi Arabia continue to engage in significant economic cooperation and maintain existing agreements:

• Strong Economic Partnership: The U.S. and Saudi Arabia share a long-standing economic relationship. In 2024, total goods trade between the two nations reached an estimated $25.9 billion, with U.S. exports at $13.2 billion and imports at $12.7 billion.

• Saudi Investment in the U.S.: Saudi Arabia has made substantial commitments to invest in the United States. In May 2025, during a visit by President Donald Trump, Saudi Arabia announced a $600 billion commitment to invest in the U.S. across various sectors, including AI data centers, energy infrastructure, and defense. This includes specific investment funds like a $5 billion Energy Investment Fund and a $5 billion New Era Aerospace and Defense Technology Fund.

• Defense Sales: The U.S. and Saudi Arabia have a robust defense partnership, with a historic $142 billion defense sales agreement providing Saudi Arabia with advanced equipment and services from U.S. defense firms.

• Sectoral Cooperation: Both countries are actively collaborating in diverse fields, including:
  Energy and Sustainability: Focused on securing global energy markets and transitioning to renewables, including critical minerals.
  Financial Services: Mobilizing capital and accelerating FinTech innovation.
  AI and Technology: Building a digital alliance in AI, cloud infrastructure, cybersecurity, and advanced computing. Saudi Arabian DataVolt is investing $20 billion in AI data centers in the U.S.
  Industry and Manufacturing: Driving high-tech production in areas like aerospace and automotive.
  Healthcare and Life Sciences: Advancing medical technologies and research.

• Ongoing Bilateral Negotiations: The Office of the U.S. Trade Representative (USTR) has been leading bilateral negotiations with trading partners, and while specific details for Saudi Arabia are not fully public, the extension of the tariff pause until August 1, 2025, suggests that discussions are ongoing.

Impact on Companies:

The new tariffs, particularly the reciprocal tariffs and the copper tariff, could impact companies engaged in U.S.-Saudi trade:

• Increased Costs for Importers: U.S. companies importing goods from Saudi Arabia that fall under the new tariff categories will face higher costs, which could be passed on to consumers or impact profit margins.

• Supply Chain Adjustments: Companies may need to re-evaluate their supply chains to mitigate the impact of tariffs, potentially seeking alternative sources or adjusting production strategies.

• Strategic Investments Continue: Despite the tariffs, the substantial Saudi investments in the U.S. signal a continued commitment to strengthening economic ties, which could benefit U.S. companies involved in those specific projects and sectors (e.g., AI, energy, defense, infrastructure).

• U.S. Companies in Saudi Arabia: Iconic American companies like Hill International, Jacobs, Parsons, and AECOM are actively involved in significant infrastructure projects in Saudi Arabia, benefiting from the Kingdom's Vision 2030 initiatives. These companies are likely to continue their operations there.

• Tech Partnerships: U.S. tech giants such as Google, Oracle, Salesforce, AMD, and Uber are committing to substantial investments in transformative technologies in both the U.S. and Saudi Arabia, indicating ongoing collaboration despite trade policy shifts.

In summary, while the U.S. is implementing new tariffs that will affect trade with Saudi Arabia from August 1, 2025, the broader economic relationship remains multifaceted, with significant existing investments and ongoing cooperation in key strategic sectors. The precise impact will depend on the final reciprocal tariff rates applied to Saudi goods and the extent to which ongoing negotiations lead to agreements.