Here is the latest update on US tariffs for Jordan, including recent deals, agreements, and the impact on companies.

Latest Tariff Update for Jordan

• New Tariff Rate: As of August 1, 2025, the United States has imposed a new reciprocal tariff of 15% on goods imported from Jordan. This rate is a reduction from the previously threatened higher rates but still represents a significant change to the long-standing duty-free status of most Jordanian products. The new tariffs are part of the broader "reciprocal tariffs" policy being implemented by the Trump administration.

Deals and Agreements

• United States-Jordan Free Trade Agreement (FTA): This agreement, which entered into force in 2001, is a cornerstone of the US-Jordan economic relationship. It previously granted duty-free access to nearly all Jordanian exports to the US. While the FTA is still technically in place, the new 15% tariff effectively overrides its provisions for many products. The new tariff is seen as a re-negotiation of the terms of the trade relationship outside of the traditional FTA framework.

• Qualifying Industrial Zones (QIZs): The QIZ program, established in 1996, also allows products from Jordan (and other countries) to enter the US duty-free if they meet certain content requirements, including a specified amount of Israeli content. The new tariffs are expected to impact QIZ products as well, although the specific implementation details and any potential carve-outs are still being clarified.

Impact on Companies and Industries

The new tariff has a significant impact on Jordanian companies, particularly in export-oriented sectors.

• Apparel and Textile Industry: This is Jordan's largest export sector to the US, accounting for a substantial portion of its total exports. American companies like Walmart, Target, and Hanes have established factories in Jordan to leverage the duty-free status. The 15% tariff makes Jordanian apparel more expensive and less competitive in the US market, potentially threatening jobs and investment. A study cited a 25% drop in clothing exports to the US could lead to the loss of 10,000 to 15,000 direct jobs, with women being disproportionately affected.

• Other Export Sectors: Other key Jordanian exports to the US, such as jewelry, fertilizers, and pharmaceuticals, will also face the new 15% tariff. Businesses in these sectors will likely experience higher costs, tighter margins, and pressure to either absorb the cost or pass it on to consumers.

• Supply Chain Disruptions: Businesses that import US goods, such as high-tech components, pharmaceuticals, and industrial equipment, will also face higher input costs. This could force companies to find alternative suppliers or pass the costs onto their consumers, affecting various industries.

• Larger vs. Smaller Firms: Larger firms may have the capacity to pivot towards new markets or absorb some of the costs, but many small and medium-sized enterprises (SMEs) face significant headwinds for their trade planning, investment certainty, and operational scaling.

Summary of the New Trade Environment

The new US tariffs represent a fundamental shift in the trade relationship with Jordan. While the 15% tariff is not as high as some other countries are facing, it undermines the decades-long foundation of duty-free trade under the US-Jordan FTA. Jordanian officials are working to address the economic and social impact of the tariffs, and there is a renewed focus on seeking updates to existing agreements and encouraging more direct US investment to offset the negative effects.