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New US tariffs create opportunities in steel industry

New US tariffs are causing major changes in the steel and metals industry. While limited impacts are expected for Oman, the Gulf region is creating opportunities. Companies in the steel, iron and metal sector are aiming to increase their power in the global market with new strategies.

New US tariffs create opportunities in steel industry

While the new tariffs announced by the US shake the global trade balance, their impact on Oman is expected to be limited. Dr. Nasser bin Rashid al Maawali, Undersecretary of Oman's Ministry of Economy, stated on social media that the exemption of energy products from tariffs is an important advantage for the country's economy. Al Maawali emphasized that this development could open the door to new cooperation for Oman and stated, “We can strengthen our relations with countries that have problems with the US.”

Steel, iron and metal are among the industries most affected by the new tariffs. Michael Rion, Commercial Affairs Director of Emsteel Group, to which Emirates Steel is affiliated, stated that significant changes are coming in the global steel trade. “Large producers, especially China, are likely to shift their routes to different markets as access to the US becomes more difficult. This could significantly increase competition in the Gulf region,” he commented. He added that Emsteel aims to further strengthen its presence in markets outside the US.

Dubai-based Ducab Metals Business, another major player in the industry, also aims to adapt quickly to the new process. Mohammad Almutawa, CEO of the company, stated, “In order to balance the pressure in the US market, we will focus on sourcing raw materials from producer countries such as China at more affordable prices. In this way, we can increase our competitiveness by providing a price advantage.”

According to experts, the 10% tariff rate imposed on Gulf countries is lower compared to other countries. This offers significant opportunities for the region. Justin Alexander, Director of Khalij Economics, stated, “GCC countries can take advantage of this process. They are becoming more attractive for investment and can play key roles in supply chains,”

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