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Iceland

US Revised Tariffs (%)

10

Ease of doing business

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Share of US Imports % (1 implies <1%)
US Tariff %
Revised Tariff %
Country Tariff Rate %
1
10
10
1.6
Exports (in USD Bill.) 2024
Imports (in USD Bill.) 2024
Balance (in USD Bill.) 2024
0.99
1.07
-0.09

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.

Implications

As of Sunday, April 20, 2025, here's the latest update on tariffs concerning Iceland: United States Tariffs on Goods from Iceland: General Baseline Tariff: As part of a sweeping trade policy announced earlier in April 2025, the United States has imposed a 10% tariff on all imported products from Iceland. This came into effect on April 5, 2025.   "Discounted Reciprocal Tariffs": Interestingly, the initial announcement mentioned "discounted reciprocal tariffs" based on the tariffs countries charge the U.S. For Iceland, which also applies a relatively low tariff rate to U.S. goods (historically around 1-1.5%), the "discounted reciprocal tariff" was also set at 10%. This means the primary tariff on Icelandic goods entering the U.S. is currently 10%.   Impact: While Iceland's Minister of Finance expressed that any tariffs on Icelandic products are "not good news," the 10% rate is significantly lower than the tariffs imposed on other major U.S. trading partners like the European Union (20%) and Switzerland (31%). This outcome was reportedly unexpected and considered less severe than initially anticipated by Icelandic officials. The main concern for Iceland is the potential impact on its "fourth pillar" exports, such as software and pharmaceuticals, where global competition is intense. Iceland's Tariffs on Goods from the United States: Historically, Iceland has maintained relatively low average applied tariff rates. In 2022, the simple mean applied tariff rate for all products in Iceland was 1.32%. Specific tariff rates for U.S. goods entering Iceland vary by product. For example, in 2022, certain categories like industrial diamonds and safety headgear had a 0% tariff, while others like certain types of glass and footwear had tariffs ranging from 3% to over 6%. Iceland is part of the European Economic Area (EEA) through its membership in the European Free Trade Association (EFTA). The EEA agreement provides for tariff-free trade of most industrial products originating from member countries. Iceland also has a bilateral agreement with the EU offering reduced or zero tariffs on Icelandic seafood. These agreements mean that U.S. agricultural products exported to Iceland can face tariffs up to 30% higher than those from the EU.   Iceland also has free trade agreements with countries like China and the Faroe Islands, offering reciprocal tariff-free treatment on a range of goods.   Key Takeaways: The most significant recent development is the 10% tariff imposed by the United States on all goods from Iceland, effective April 5, 2025.   Iceland's tariffs on U.S. goods remain generally low, with an average well below the new U.S. rate. Iceland, as part of the EEA and EFTA, has significant trade relationships with the EU, often with more favorable tariff conditions than those applied to U.S. goods.   There is no bilateral Free Trade Agreement between the United States and Iceland, although a Trade and Investment Framework Agreement (TIFA) exists.   It's important to note that the situation is evolving, and the Icelandic government is still assessing the full implications of the new U.S. tariffs. Potential benefits for Icelandic industries competing with countries facing higher U.S. tariffs, such as the whitefish industry competing with Norway (15% U.S. tariff), are also being considered.

US Negotiation Strategy

Based on the most recent data from 2024, the top imports to the United States from Iceland by value are: Fish, crustaceans, molluscs, aquatics invertebrates ($344.10 Million) Pharmaceutical products ($295.99 Million) Optical, photo, technical, medical apparatus ($265.32 Million) Beverages, spirits and vinegar ($45.99 Million) Iron and steel ($35.13 Million) Here's a look at which states in the U.S. have manufacturing in similar sectors, along with some example companies: Fish, crustaceans, molluscs, aquatics invertebrates: Alaska: Has a significant seafood processing industry. Examples include Trident Seafoods and Peter Pan Seafoods.   Washington: Also has a large seafood industry. Companies like Cooke Aquaculture Pacific operate in the state.   Massachusetts: A historical hub for fishing and seafood processing. Companies such as Legal Sea Foods have processing facilities. Other coastal states like Louisiana, California, and Maine also have notable seafood industries.   Pharmaceutical products: Indiana: Has a strong pharmaceutical manufacturing sector. Examples include Eli Lilly and Company and Roche Diagnostics.   North Carolina: Another key state for pharmaceutical manufacturing. Companies like GlaxoSmithKline (GSK) and Pfizer have operations there.   Pennsylvania: Has a substantial pharmaceutical industry. Companies such as Merck and Teva Pharmaceuticals have facilities in the state.   Other states with significant pharmaceutical manufacturing include New Jersey, Illinois, Kentucky, Tennessee, and Wisconsin. Optical, photo, technical, medical apparatus: Massachusetts: A hub for medical device manufacturing and research. Companies like Boston Scientific and Medtronic have a strong presence.   California: Strong in medical devices and biotechnology. Examples include Johnson & Johnson and Abbott.   Minnesota: Known as "Medical Alley" due to its concentration of medical device companies, such as 3M and Mayo Clinic.   Other states with manufacturing in this sector include Florida, Pennsylvania, and Indiana. Beverages, spirits and vinegar: California: A major producer of wine and other beverages. Companies like E. & J. Gallo Winery and Constellation Brands are based there.   Kentucky: Famous for bourbon production. Examples include Jim Beam and Maker's Mark.   Tennessee: Known for whiskey production, such as Jack Daniel's and George Dickel.   Many other states have significant brewing, winemaking, and distilling industries, including Oregon, Washington, Colorado, and North Carolina.   Iron and steel: Pennsylvania: Has a long history of steel production. Companies like U.S. Steel and Nucor have facilities in the state. Ohio: Another significant steel-producing state. Cleveland-Cliffs is a major player.   Indiana: Has a substantial steel manufacturing sector.   Other states with iron and steel production include Illinois, Michigan, and Alabama.   It's important to note that while these states have companies manufacturing similar types of goods, the specific products, scale of production, and specialization may differ from those imported from Iceland. Additionally, the U.S. market often involves complex supply chains where raw materials or components might be imported even if the final product is manufactured domestically.

Investing in USA

theboardiQ Economic Relevance Score, ranks States of USA based on 11 parameters

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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

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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.

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