By Ateeq Shariff

March 4 (Reuters) - Stock markets in the Gulf ended mixed on Tuesday as new U.S. tariffs threatened to escalate global trade tensions, while Saudi Aramco's disappointing earnings weighed on investor sentiment.

U.S. President Donald Trump's new 25% tariffs on imports from Mexico and Canada took effect on Tuesday, along with a doubling of duties on Chinese goods to 20%, launching new trade conflicts with the top three U.S. trading partners.

Saudi Arabia's benchmark index .TASI dropped 1.6%, weighed by a 2.2% fall in Aramco 2222.SE after the oil giant reported a drop in annual profit and signalled it will slash its dividend payouts by nearly a third this year to $85.4 billion.

The sharply lower dividends could also mean fewer funds for the kingdom, which directly owns 81.5% of Aramco, as it races to complete several mammoth projects and possibly faces a wider budget deficit.

The firm also declared $200 million in performance-linked dividends to be paid in the first quarter of 2025, a steep decline from the nearly $10.8 billion declared for each quarter of 2024.

The kingdom's energy index .TENI was down 2.2%.

Aramco's results fell short of expectations and significantly impacted the energy sector, said George Pavel, general manager at trading platform Naga.com.

"External factors further weighed on market sentiment, with oil prices continuing to decline following OPEC's decision to increase production," Pavel said.

In Abu Dhabi, the index .FTFADGI finished 0.3% higher, helped by a 1.5% gain in petrochemical firm Borouge BOROUGE.AD after the announcement of its merger with Borealis to form the world's fourth largest polyolefins firm by production capacity.

The merged entity, Borouge Group International, will combine two joint ventures: Borealis, which is 75% owned by Austria's OMV OMVV.VI and 25% by Abu Dhabi National Oil Company, and Borouge, which is 54% owned by ADNOC and 36% by Borealis.

Dubai's main share index .DFMGI gained 0.5%, led by a 2.2% rise in blue-chip developer Emaar Properties EMAR.DU.

Outside the Gulf, Egypt's blue-chip index .EGX30 dropped 0.7%, hit by a 1.1% dip in Commercial International Bank COMI.CA.

(Reporting by Ateeq Shariff in Bengaluru; Editing by Leroy Leo)

((AteeqUr.Shariff@thomsonreuters.com; +918061822788;))