MUSCAT: The 10% reciprocal tariffs imposed by US President Donald Trump on Oman and other GCC countries may have “relatively limited and non-threatening impact on the Sultanate’s economy,” according to a top official at Ministry of Economy.
His Excellency Dr Nasser bin Rashid Al Mawali, Undersecretary of Ministry of Economy noted that Oman will remain unscathed since US imports of oil, gas, and refined products are exempted from the new tariffs.”
However, Al Mawali pointed out that the impact on Oman’s economy may come through several channels including disruption of global trade, and slowdown in global economic growth.
Read More
- HH Sayyid Bilarab to patronise grand reveal of Greater Muscat Plan on May 7
- Oman confirms 14,000 pilgrims for Hajj, airfare reduced by RO40
- Young entrepreneur from Oman turns his land into a thriving business cultivating guava
- His Majesty the Sultan and Egyptian President push for diplomacy amid regional tensions
- Oman invests in Elon Musk’s Neuralink to back future healthcare technologies
Apart from Oman, GCC nations including Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, and Bahrain — will be subject to the baseline 10 percent tariff. The White House said that the new tariffs will come into effect on April 5, with the higher rates for some countries to be enforced starting April 9.
“The high US tariffs on other countries provide a golden opportunity for the Sultanate of Oman by expanding its trade relations with trading partners affected by US tariffs. There is also an opportunity to enhance foreign investment in the Sultanate and strengthen supply chains from other countries negatively affected by the imposition of high US tariffs,” Al Mawali explained.
“The Sultanate’s position and strategic location can be leveraged to serve as a transit and launch point to the US market for countries subject to high tariffs,” he added.
Meanwhile, Fitch Solutions’ research unit BMI sees MENA countries (and GCC countries in particular) being safe from direct tariffs from the Trump administration due to “economic and strategic considerations,” it said in its MENA Monthly Outlook Report.
“While exports from the region will not be significantly affected, there could be an impact on oil prices and inflation, with more debt-ridden emerging markets set to feel the brunt of the impacts,” the report added.
For all the latest news from Oman and GCC, follow us on Twitter, Instagram and LinkedIn, like us on Facebook and subscribe to our YouTube page, which is updated daily.
