Ease of doing business
theboardiQ Tariffs Dashboard:
Powering Mutually Beneficial Global Trade.
Understand the complexities of international tariffs and ease of doing business across nations to cultivate balanced trade relationships, streamline operations, and deliver cost savings to end consumers.
Implications
Based on the current trade environment as of October 2025, here is an update on the US tariffs, trade deals, and the potential impact on Bhutan:
1. US Tariffs on Bhutan
Bhutan is not one of the countries listed in the US executive orders that established high, country-specific "reciprocal tariff" rates. Therefore, Bhutan is currently subject to the baseline reciprocal tariff applied to all non-sanctioned countries that do not have a trade agreement with the US.
Area | Status (October 2025) | Key Details |
US Tariff Rate on Bhutan | 10% (Implemented) | Bhutan is subject to the 10% baseline "reciprocal tariff" on all goods exported to the U.S. This tariff applies to countries not listed for higher country-specific rates or those that have not yet reached a bilateral trade agreement with the U.S. |
Other Tariffs | Product-Specific Tariffs May Apply | Bhutanese exports may also be subject to global Section 232 tariffs (e.g., on copper, steel, or aluminum products) if they contain those materials, or the new Section 232 wood-related tariffs (effective Oct 14, 2025). |
De Minimis Exemption | Suspended | The U.S. has suspended the de minimis exemption globally, meaning most small-value shipments (previously under $800) are no longer exempt and are now subject to the applicable 10% tariff. |
2. Trade Deals and Agreements with the US
As of October 2025, Bhutan does not have a Free Trade Agreement (FTA) or a specific bilateral trade deal with the United States that would exempt it from the new reciprocal tariffs.
Bhutan is not among the seven trading partners (including the UK, Japan, and South Korea) that the U.S. has announced preliminary or finalized agreements with to modify or cap their new tariff rates.
Bhutan's primary existing trade agreements are with regional partners, such as a Preferential Trade Agreement (PTA) with Bangladesh and an upcoming Free Trade Agreement (FTA) with Thailand, expected to be implemented by January 2026.
3. Impact on Bhutanese Companies
The new U.S. trade policy environment creates two primary challenges for companies in Bhutan:
Direct Cost Increase: The introduction of the 10% baseline reciprocal tariff on all Bhutanese exports to the U.S. increases the cost of goods for American importers, making Bhutanese products less competitive compared to countries that have negotiated a zero-tariff deal.
Loss of De Minimis Benefit: The global suspension of the $800 de minimis exemption is particularly challenging for smaller exporters and artisans, who often ship low-value, high-margin craft or specialty products (e.g., textiles, essential oils, high-end agricultural products). These goods are now subject to the 10% tariff and full customs clearance procedures, adding cost and complexity to their entire logistics chain.
Bhutan's economy is actively working to diversify its exports and liberalize its Foreign Direct Investment (FDI) regime, with a focus on areas like the digital economy, services, and niche manufacturing. The U.S. tariffs, however, add an immediate headwind to any company in Bhutan looking to expand into the U.S. market.
US Revised Tariffs
Country Tariffs
Balance of Trade
Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in countries, prepared by U.S. Embassies worldwide, Commerce Department, State Department and other U.S. agencies’ professionals
Tariff Rate for US
World Bank staff estimates using the World Integrated Trade Solution system, based on tariff data from the United Nations Conference on Trade and Development's Trade Analysis and Information System ( TRAINS ) database and global imports data from the United Nations Statistics Division's Comtrade database.
US Imports Guide
United States Imports from Countries during 2024, according to the United Nations COMTRADE database on international trade. United States Imports from Countries- data, historical chart and statistics - was last updated on April of 2025.
Investing in USA
theboardiQ Economic Relevance Score, ranks States of USA based on 11 parameters
Sources : Forbes | USDA Economic Research | TCGen Total Innovation Rank Index | Best States for Manufacturing | World Population Review | Tax Foundation | US News | BEA Data | Wikipedia | International Trade Administration
theboardiQ's Economic Relevance Score provides a comprehensive, data-driven assessment of a nation's economic vitality and global significance. This score is meticulously calculated using 11 key parameters, each reflecting a critical facet of economic performance. It analyzes the representation of Fortune 500 companies within a nation, a strong indicator of its business environment and market size. The balance of trade surplus or deficit reveals the nation's international competitiveness and export strength. It incorporates Gross Domestic Product (GDP), a fundamental measure of overall economic output, and examine the health of key sectors like agriculture and manufacturing. The score also accounts for innovation, gauging a nation's ability to drive future growth through technological advancements. Crucial labor market indicators such as employment rates are considered, alongside fiscal policies reflected in tax rates. To capture the lived experience of citizens, it assesses cost of living and disposable income, providing insight into purchasing power and economic well-being. Finally, education levels are integrated, recognizing their pivotal role in fostering a skilled workforce and driving long-term economic development. By synthesizing these 11 parameters, theboardiQ's Economic Relevance Score delivers a nuanced and holistic view of a nation's economic standing, enabling informed strategic decisions. The Top 5 States in the assessment are Texas, North Carolina, Virginia, Florida and Washington. Texas does consistently well across most of the 11 variables especially in the areas of GDP, F500 representation in the State, Balance of Trade where it ranks 2nd nationally. North Carolina scores as the highest-ranking state nationally in manufacturing and performs consistently across the other variables. Virginia does well in disposable income where it ranks 3rd nationally. It also scores high in the variables of manufacturing and employment Florida holds the 4th ranking nationally for GDP and Tax Washington State scores the top spot for disposable income nationally, 2nd for education and 3rd for innovation. Colorado, with an overall rank of 7 scores the top spot for Education (schools and higher education). Nebraska, that ranked 10th overall, did well in Agriculture where it is ranked 3rd nationally as well as Trade Balance where it ranked 5th. Illinois, though ranked 20th overall did well nationally in F500 representation, GDP, Agriculture, and Disposable Income. Pennsylvania comes in at 21 overall doing well nationally in GDP (6th); Manufacturing (8th) and F500 representation (8th) New York scores 23rd overall with a 2 ranking in Disposable Income nationally, as well as 3rd in both F500 representation and GDP. California comes in at 29th overall and has the top spot ranking in a whopping 4 variables nationally – GDP, Innovation, Agriculture and F500 representation. However, performance in the areas of Trade Balance, Cost of Living, Tax, Manufacturing and Employment resulted in the overall ranking dipping. Wyoming at 30th overall scores the top spot nationally in the area of Tax Massachusetts at 31 overall does well in innovation where it is ranked 2nd nationally Arkansas at 36 and Alabama at 39, do well in overall Cost of Living where they are ranked 2nd and 3rd nationally, respectively. Louisiana ranked 44th overall is ranked 1st in Trade Balance nationally.
Economic
Relevance
Ranking
State | Info | Overall Rank | Agri | Innov | Mfg | Employ | Tax | Edu | GDP | F500 Rep | Trade Balance | Cost of Living | Disp Income |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Texas | 1 | 4 | 5 | 11 | 10 | 7 | 42 | 2 | 2 | 2 | 24 | 13 | |
North Carolina | 2 | 9 | 21 | 1 | 4 | 12 | 28 | 11 | 16 | 41 | 17 | 17 | |
Virginia | 3 | 32 | 24 | 6 | 2 | 28 | 7 | 13 | 6 | 34 | 35 | 3 | |
Florida | 4 | 21 | 11 | 15 | 1 | 4 | 35 | 4 | 7 | 40 | 30 | 37 | |
Washington | 5 | 16 | 3 | 36 | 28 | 45 | 9 | 9 | 15 | 9 | 43 | 1 | |
Missouri | 6 | 11 | 25 | 22 | 20 | 13 | 32 | 21 | 22 | 20 | 10 | 20 | |
Georgia | 7 | 15 | 26 | 9 | 3 | 26 | 34 | 8 | 9 | 43 | 26 | 19 | |
Minnesota | 8 | 6 | 10 | 47 | 6 | 44 | 8 | 20 | 10 | 33 | 33 | 9 | |
Ohio | 9 | 12 | 32 | 7 | 30 | 35 | 36 | 7 | 5 | 38 | 15 | 11 | |
Illinois | 10 | 5 | 23 | 31 | 23 | 37 | 16 | 5 | 4 | 47 | 32 | 7 |