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Implications
The trade relationship between the US and Ethiopia has been significantly impacted by new US tariff policies and the continued absence of a key preferential trade program.
Here is an update on US Tariffs, Deals and Agreements, and Company Impact on Ethiopia as of October 2025:
Area | Status (October 2025) | Key Details |
Current US Tariff Rate | 10% (Implemented) | Ethiopian exports to the US are subject to the 10% baseline reciprocal tariff that the US has implemented on most global trading partners since April 2025. |
Trade Preference Program | African Growth and Opportunity Act (AGOA) Status: Suspended | Ethiopia remains suspended from the duty-free benefits of AGOA (since 2022). Its exports no longer receive duty-free access and are instead subject to the new 10% reciprocal tariff. |
Deals and Agreements | Limited - Focus on Commercial Diplomacy | The US has continued the national emergency Executive Order on Ethiopia (EO 14046, initially targeting sanctions related to the northern conflict) for another year. The current US administration is reportedly focused on commercial diplomacy and large-scale investment initiatives to foster bilateral economic interests, but no new major trade deals have been announced. |
BRICS Tariff Threat | Additional 10% Tariff Threatened | The US has reportedly threatened an additional 10% tariff on countries, including Ethiopia, that have aligned with the BRICS intergovernmental organization. This would bring the total tariff rate to 20% if implemented. |
Companies/Sectors Impacted | Garments, Coffee, Oilseeds, Cut Flowers | - Garments/Textiles: Companies in industrial parks, which relied heavily on AGOA, suffered a sharp decline in exports and mass layoffs following the 2022 suspension. They now face the 10% tariff on top of losing duty-free access. |
- Coffee: A major export, value-added coffee products are impacted by the 10% tariff, prompting Ethiopian authorities to accelerate efforts to diversify export markets away from the US. | ||
- Oilseeds and Cut Flowers: These sectors also face notable challenges and a potential dampening of US demand due to the new tariffs. | ||
- Potential Opportunity: Studies suggest the new US tariff regime, which is higher for key Asian competitors like China (up to ∼30%) and Vietnam, could give Ethiopia a relative competitive edge in its limited textile and leather exports, if the country can improve supply capacity and export competitiveness. |
Key Takeaway:
Ethiopia is facing a dual trade challenge: the lasting impact of the AGOA suspension (losing 0% duty-free access) and the new 10% baseline US tariff. This situation is driving a push for diversification of export markets and an increase in trade competitiveness to mitigate the adverse economic effects.
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Tariff Rate for US
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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 |