Trump’s Saudi Visit Secures $600B Amid Tariff Turmoil

May 14, 2025 - 13:01
May 14, 2025 - 13:05
 0  7
Trump’s Saudi Visit Secures $600B Amid Tariff Turmoil
Trump’s 24-hour Saudi Arabia visit yields $600B in deals, boosts US economy, and addresses Syria and Abraham Accords, stirring Israeli reactions.

President Donald Trump landed in Riyadh on May 13, 2025, for a whirlwind 24-hour visit, marking his first foreign trip of his second term. The visit, focused on economic and diplomatic wins, delivered a staggering $600 billion in Saudi investment commitments to the US, alongside a $142 billion arms deal, the largest defense agreement in US history.

Accompanied by a powerhouse delegation of US business and tech moguls, including Elon Musk, Sam Altman, and Blackstone CEO Stephen Schwarzman, Trump underscored his dealmaking prowess. The trip, echoing his 2017 Middle East tour, prioritized commerce over conflict, navigating a turbulent backdrop of global tariffs and regional tensions.

Economic Gains Amid Tariff Chaos

The $600 billion investment package spans defense, energy, AI, and technology sectors, with a $20 billion commitment from Saudi data center operator DataVolt for AI infrastructure in the US. Google, Oracle, and Salesforce also pledged $80 billion in tech investments, signaling a robust US-Saudi economic alliance.

Trump’s visit comes as his administration imposes sweeping tariffs, including 125% levies on Chinese imports. The Saudi deals provide a counterbalance, injecting capital into American industries and reinforcing economic stability. Analysts view this as a strategic move to offset tariff-related disruptions while strengthening ties with Gulf allies.

Syria Sanctions Lifted, New Diplomatic Chapter

In a surprise announcement, Trump declared the lifting of US sanctions on Syria, in place since 1979, to “give them a chance at greatness.” The decision, urged by Saudi Crown Prince Mohammed bin Salman and Turkey’s Recep Tayyip Erdoğan, aims to support Syria’s reconstruction after the fall of Bashar al-Assad in December 2024.

Trump met Syria’s new president, Ahmed al-Sharaa, on May 14, 2025, in Riyadh, marking the first US-Syrian presidential meeting since 2000. Sharaa, a former rebel leader once linked to al-Qaeda, offered sweeteners like a Trump Tower in Damascus and resource-sharing deals. Trump urged Sharaa to join the Abraham Accords and address ISIS detention centers, signaling a bold shift in US policy.

Abraham Accords and Saudi-Israel Ties

Trump repeatedly expressed his “dream” for Saudi Arabia to join the Abraham Accords, the 2020 agreements normalizing ties between Israel and several Arab states. Speaking at the Saudi-US Investment Forum, he praised Crown Prince Mohammed bin Salman but acknowledged Saudi reluctance, saying, “You’ll do it in your own time.”

Saudi Arabia insists on a Gaza ceasefire and a clear path to Palestinian statehood before normalizing with Israel. With Israel’s ongoing war in Gaza and Prime Minister Benjamin Netanyahu’s rejection of a two-state solution, progress remains elusive. Trump’s decision to delink US-Saudi nuclear cooperation from Israel recognition further complicates the normalization push.

Israeli Reaction and Regional Dynamics

Israel, notably absent from Trump’s itinerary, expressed unease over the Syria sanctions lift and the warming US-Syria ties. Israeli leaders had hoped for a US military strike on Iran’s nuclear program, but Trump’s focus on diplomacy with Tehran and economic deals with Gulf states sidelined those expectations.

Netanyahu’s intensified Gaza operations and strikes in Syria, including one near Damascus’ presidential palace, reflect Israel’s defiance. Analysts suggest Trump’s transactional approach prioritizes Gulf investments over Israel’s immediate security concerns, straining the US-Israel alliance.

Trump’s Saudi visit underscores his signature dealmaking style, securing massive economic wins while navigating complex regional politics. The $600 billion in investments and historic arms deal bolster the US economy amid tariff uncertainties.

However, the Syria policy shift and stalled Abraham Accords progress highlight the challenges of balancing economic priorities with geopolitical realities. As Trump continues his Gulf tour in Qatar and the UAE, the Middle East remains a high-stakes arena for his administration’s ambitions.