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Implications
The recent widespread imposition of "reciprocal tariffs" by the United States has had a significant impact on Jordan, despite the existing Free Trade Agreement (FTA) between the two countries.
Here is an update on Jordan's status regarding the new US tariffs as of October 2025:
Area | Status (October 2025) | Key Details |
New US Tariff Rate | 15% (Implemented since August 2025) | Jordan was initially subject to a 10% baseline tariff in April 2025, which was later replaced by a country-specific 15% reciprocal tariff that took effect in August. |
Trade Agreements Status | US-Jordan FTA Remains in Force | The United States–Jordan Free Trade Agreement (JUSFTA), which grants duty-free status to most Jordanian exports, remains officially in force. However, the new reciprocal tariffs are applied in addition to or in spite of the FTA's tariff-free provisions, creating legal and commercial uncertainty. |
Sector/Company Impact | Textiles/Garments Heavily Exposed | Jordan's garment and textiles sector, which accounts for the largest share of its exports to the US (nearly $2 billion annually), is the most impacted. Exporters must now pay the 15% tariff on applicable goods. |
Competitive Position | Temporary Advantage vs. Competitors | The 15% tariff is considered a success of Jordan's negotiations, as it is lower than rates imposed on some key competitors like Vietnam (≈46%) and Bangladesh (≈35%). This grants Jordan a temporary price advantage in the US market over those countries. |
Jordan's Strategy | Negotiation and Economic Reform | Jordan is focused on: 1) Negotiating a reduction of the tariff, potentially back to the 10% baseline or lower. 2) Implementing long-term structural reforms to update production, increase local content, and diversify its export markets to reduce reliance on the US. |
Details on the US-Jordan FTA and Tariffs
The Conflict: The US implemented the new tariffs under an emergency authority (IEEPA), which appears to overrule or coexist with the tariff exemptions in the existing 2001 US-Jordan Free Trade Agreement (JUSFTA).
Negotiated Rate: Jordan actively negotiated the tariff rate down from an initially calculated 20% to the implemented 15%.
The Economic Exposure: The US is a crucial market for Jordan, accounting for approximately 25% of its total exports. The tariffs pose a direct challenge to the profitability and stability of companies exporting to the US.
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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 |