Most major stock markets in the Gulf were flat to lower in early trade on Monday after U.S. President Donald Trump threatened more tariffs, including on steel and aluminium, that could spark inflation and limit the scope for interest rate cuts. 

Trump announced plans to impose 25% tariffs on all steel and aluminium imports to the U.S., effective immediately, with additional reciprocal tariffs to be made public on Tuesday or Wednesday.

Raising the prospect of a full-scale trade war, German Chancellor Olaf Scholz said the European Union was prepared to retaliate "within an hour" if the U.S. imposed tariffs on European goods.

China's retaliatory tariffs on select U.S. exports are set to kick in on Monday, with no indication of a breakthrough in the ongoing trade tensions.

Saudi Arabia's benchmark index eased 0.1%, hit by a 2% fall in the country's biggest lender Saudi National Bank .

Al Yamamah Steel Industries Co also slid 5.3% - putting on course to be the index's biggest faller.

In Abu Dhabi, the index was flat.

The Qatari index edged 0.1% higher, helped by a 0.4% rise in the Gulf's biggest lender Qatar National Bank.

By contrast, United Development Company dropped 1.3% after posting a sharp decline in 2024 revenue.

Dubai's main share index gained 0.6%, with leading lender Emirates NBD rising 2.6%.

(Reporting by Ateeq Shariff in Bengaluru; editing by Barbara Lewis)