What specific tariff changes is PwC recommending GCC businesses prepare for?

While PwC's full analysis details specific sectors and tariff categories, the core recommendation centers on developing scenario-based planning for potential tariff increases across manufactured goods, consumer products, and intermediate materials. Companies should model 10-25% cost increases across key import categories and stress-test supply chain viability under escalated tariff regimes.

How should GCC businesses adjust sourcing strategies in response to US tariff changes?

PwC recommends diversifying sourcing beyond traditional US suppliers, evaluating free-trade agreement opportunities, and considering nearshoring or alternative geographic suppliers. Companies should also explore tariff mitigation strategies such as rules-of-origin optimization, supplier consolidation near tariff-advantaged regions, and strategic inventory positioning.

What are the compliance and operational risks for GCC traders operating with US partners?

Key risks include tariff reclassification uncertainty, customs delays, and unexpected duty assessments. PwC advises implementing robust tariff classification systems, maintaining detailed product documentation, engaging customs brokers proactively, and building buffer inventory to absorb compliance-related delays.

Which GCC sectors face the highest tariff exposure?

Sectors with significant US trade dependency—including automotive components, consumer electronics, pharmaceuticals, chemicals, and textiles—face elevated exposure. Companies in these industries should prioritize tariff impact assessments and develop contingency sourcing plans.

How can GCC businesses leverage trade agreements to reduce tariff impact?

PwC recommends evaluating existing bilateral agreements, preferential trade mechanisms, and potential emerging frameworks that might lower tariff exposure. Companies should also explore certification and compliance programs that unlock reduced tariff rates for qualifying products.

Trade Policy & Tariffs

High Impact

US Tariff Strategy: GCC Business Guide to Navigate Trade Shifts

Jun 28, 2026

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The signal

PwC has released strategic guidance for Gulf Cooperation Council (GCC) businesses navigating the evolving US trade and tariff landscape. This analysis addresses the critical challenge facing Middle Eastern exporters and importers—how to anticipate, adapt to, and mitigate the effects of changing US trade policies that directly impact supply chain costs, lead times, and sourcing strategies.

For supply chain professionals, this represents a structural shift in how companies must model their operations, particularly those relying on US-dependent supply chains or exporting to North America. The guidance signals that tariff uncertainty is now a permanent operational variable requiring proactive scenario planning and strategic sourcing diversification.

GCC businesses face heightened complexity in managing tariffs while maintaining competitive margins, making strategic trade planning essential for 2024 and beyond.

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What This Means for Your Supply Chain

Simulation Suggestion

strategic

What if average tariff rates increase by 15-25% on GCC imports?

Simulate a scenario where tariff rates on imported goods from GCC countries increase across major commodity categories by 15-25%. Model the impact on landed costs, supplier selection, pricing power, and inventory turnover for companies relying on US-GCC trade flows.

Run this scenario

Simulation Suggestion

immediate

What if customs compliance delays add 3-5 days to port clearance?

Simulate increased US customs processing times due to heightened tariff classification reviews and documentation requirements. Model the impact on in-transit inventory, service level commitments, and warehousing capacity needs as products clear ports more slowly.

Run this scenario

Simulation Suggestion

this month

What if sourcing diversification delays supplier onboarding by 6-8 weeks?

Simulate the supply chain impact of companies shifting sourcing away from traditional suppliers toward tariff-advantaged regions, assuming 6-8 week qualification and logistics ramp-up delays. Model inventory buffers, lead time extensions, and service level tradeoffs.

Run this scenario

Go deeper:

Supply Chain Digital Twin: The 2026 Guide

How operators model end-to-end supply chains to see how tariffs, supplier shocks, and regulatory changes ripple across cost, service, risk, and time.

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