Trading in the United Arab Emirates’ equity markets resulted in mixed outcomes on Monday, reflecting a cautious sentiment influenced by US President Donald Trump’s plans to impose new tariffs. At the close of trading, the FTSE ADX General Index decreased by 0.715%, while the DFM General Index rose by 0.39%.

The Trump administration is exploring reciprocal tariffs on countries that impose tariffs on US goods after previously levying tariffs on steel and aluminum imports. Recommendations related to these new tariffs are expected by April 1, with potential automobile tariffs to follow as early as April 2, according to Reuters.

According to TradingView, analysts from Oxford Economics have cautioned that the increasing tariffs could hinder US economic growth and contribute to “even more stubborn inflation,” which may compel the Federal Reserve to maintain higher interest rates. They noted that the Fed needs time to assess how these tariffs are impacting its dual mandate, suggesting it may hold off on a 25 basis point rate cut until December and shift its focus from inflation to employment, potentially leading to more aggressive easing in 2026.

In the UAE, Naeem Holding for Investments (DFM:NAHO) reported a preliminary net profit for 2024, attributed to an increase in full-year revenue, though its stock traded flat. Conversely, United Fidelity Insurance (ADX:FIDELITYUNITED) experienced a wider loss in 2024 despite a year-over-year rise in revenue, with its shares declining by 1.84%.

Additionally, Emsteel Building Materials (ADX:EMSTEEL) announced ambitious targets to reduce its greenhouse gas emissions by 40% in its steel operations and 30% in its cement operations by 2030, compared to 2019 levels. This announcement led to a decline in the company’s stock, which fell by 2.381%.