MUSCAT, April 7 Oman’s growing non-oil trade relationship with the United States is coming under renewed scrutiny, as concerns mount over the long-term implications of American tariff policies on key Omani exports.
Economic analyst Rashid al Saidi recently highlighted this issue, noting that the perceived insulation of Omani trade from global shocks may be misleading. “I don’t believe the impact will be limited,” al Saidi remarked. “The United States doesn’t import Omani oil and gas, yet it remains one of the largest importers of Omani non-oil products—valued at $1.8 billion—chief among them plastics, which are subject to a 10 per cent tariff, and aluminum, which faces a 25 per cent tariff.” These figures underscore the critical importance of the US market for Oman’s industrial and processed goods sector. According to recent trade data, plastics tops the list of Omani exports to the United States, amounting to over $439 million in trade in 2024, followed closely by mineral fuels and oils at $352 million, and aluminum at $271 million. Precious metals and stones also feature prominently, with exports valued at $234 million, along with iron and steel products ($102 million), fertilizers ($98 million), and organic chemicals ($76 million). While some of these categories are relatively resilient, others are more vulnerable to policy changes, particularly those tied to protectionist trade measures.
The risk posed by US tariffs is not hypothetical. Since the imposition of Section 232 tariffs under the Trump administration—initially justified on national security grounds—aluminum exports from multiple countries, including Oman, have faced substantial barriers. Despite changes in US leadership, many of these tariffs remain intact. For a country like Oman, where value-added manufacturing is a strategic priority under Vision 2040, the persistence of such duties can significantly hamper competitiveness in one of the world’s largest consumer markets.
Moreover, the concentration of export revenues in a few key commodities leaves Oman exposed to external volatility. Combined, plastics and aluminum alone constitute over 40 per cent of total Omani exports to the United States. Should Washington introduce new trade restrictions or tighten enforcement of existing ones, Omani exporters could face a sharp contraction in market access, with downstream effects on domestic industry, employment, and foreign exchange earnings.
Strategically, Oman is well aware of the need to diversify both its economy and its trading partners. Policymakers have taken steps to deepen ties with emerging markets across Asia and Africa, while also pursuing new trade and investment agreements under the umbrella of the Gulf Cooperation Council (GCC). Nonetheless, the US remains a critical node in Oman’s trade network—particularly for advanced industrial and petrochemical products—and ensuring continued access to that market requires both diplomatic engagement and agile economic policy.
Ultimately, the data presented not only illustrates the strength of US–Oman trade relations but also signals the fragility of that connection in the face of shifting global trade dynamics. As Oman advances its diversification agenda, reinforcing export resilience and reducing dependence on tariff-sensitive goods will be essential to securing long-term economic stability in an increasingly uncertain global environment.
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