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Implications
As of late January 2026, the trade relationship between the US and Jordan is navigating a complex period of protectionist pressures balanced against a deep strategic alliance. While the 2001 Free Trade Agreement (FTA) remains technically in force, recent "reciprocal" tariff policies have introduced significant friction for Jordanian exporters.
Latest US Tariffs Update (January 2026)
Following the US administration's shift toward trade protectionism in 2025, a 20% reciprocal tariff was applied to a wide range of Jordanian goods. However, recent developments in late 2025 and early 2026 show a "rolling back" of some freezes on financial aid and ongoing diplomatic discussions to mitigate these duties.
Current Status: A baseline 20% levy exists on many exports, though Jordanian officials have signaled that 2026 will be a "turning point" for a boost in bilateral trade as exemptions are negotiated.
Sector Focus: The garment and textile industry remains the most exposed, as it accounts for nearly 80% of Jordan's exports to the US.
Major Companies & Sectors Impacted
The impact is heavily concentrated in the Qualifying Industrial Zones (QIZs), which traditionally enjoy duty-free access to the US.
Sector | Impact Level | Key Entities/Details |
Garments & Textiles | High | Includes major exporters like Classic Fashion Apparel and Hi-Tech Textile. Increased costs are leading to shift reductions and potential job losses for ~15,000 workers. |
Phosphate & Potash | Medium | Jordan Phosphate Mines Company (JPMC) and Arab Potash Company. Impacted by broader global commodity price shifts and logistical costs rather than direct specific tariffs. |
Pharmaceuticals | Medium | Hikma Pharmaceuticals. While much of their production is global, local Jordanian exports to the US face new administrative hurdles. |
Jewelry | Medium | A significant export category to the US (approx. $800M annually) now facing higher entry costs. |
GDP & Economic Impact
Jordan is the Middle East's most exposed economy to US trade policy due to its high export-to-GDP ratio with the US (approx. 6.6% of GDP).
Real GDP Growth (2025-2026): Growth slowed to roughly 2.0% in 2025 due to the initial tariff shock but is forecasted to recover to 2.8% - 2.9% in 2026 as industries adapt and US monetary easing supports global demand.
Employment: The textile sector (predominantly female workforce) faces the highest risk, with an estimated 10,000 to 15,000 jobs threatened by the 20-30% reduction in export volume.
Fiscal Stability: Despite trade headwinds, Jordan's sovereign credit rating has remained stable at BB, supported by continued US military and budgetary aid (approx. $1.45 billion annually).
Latest Country Balance of Trade (BOT) YTD
As of the latest available data for late 2025 into early 2026:
Overall Trade Balance: Jordan continues to run a significant trade deficit (estimated at -$7.71 billion annually).
With the US: Historically, the US has had a trade deficit with Jordan (meaning Jordan exports more than it imports from the US).
2024 (Last full year): ~$1.17 billion deficit for the US.
Oct 2025 YTD: US exports to Jordan were ~$200M/month vs. Imports from Jordan at ~$249M/month.
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