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Micronesia

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
0
Exports (in USD Bill.) 2024
Imports (in USD Bill.) 2024
Balance (in USD Bill.) 2024
0.05
0
0.05

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

Trade.Gov Fact Sheet

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.

Trading Economics - Imports

Implications

As of Sunday, April 20, 2025, here is the latest update on tariffs concerning Micronesia and its trade relationship with the United States: Recent U.S. "Reciprocal Tariffs": President Trump's recent "reciprocal tariff" announcement, which included a baseline 10% tariff on imports from nearly all countries effective April 5, 2025, does apply to the Federated States of Micronesia (FSM). Initially, higher "reciprocal tariffs" based on trade deficits were announced on April 2, 2025, and took effect on April 9, 2025, for certain countries. However, a 90-day pause on these higher tariffs (excluding China, Hong Kong, and Macau) was implemented on April 9, 2025. During this 90-day pause, the tariff rate for Micronesia has reverted to the baseline 10%. Compact of Free Association (COFA): The United States has a special relationship with Micronesia under the Compact of Free Association, which grants Micronesian citizens certain privileges in the U.S. and outlines security and economic cooperation.   The COFA authorizes the U.S. to place tariffs on items imported from Micronesia. It even specifies tariffs on some particular goods: Tuna: Duty-free only up to 10% of the amount of tuna consumed in the United States. Amounts exceeding this threshold are subject to tariffs. However, current data suggests Micronesia's tuna exports to the U.S. are well below this 10% level. Watches, buttons, and clothing are not duty-free under the COFA. Rationale for the "Reciprocal Tariff": The Trump administration's rationale for applying the 10% "reciprocal tariff" appears to be linked to the trade imbalance between the two nations. Micronesia imports significantly more goods from the United States than it exports to the U.S. In 2024, U.S. imports from Micronesia totaled a very small amount, around $100,000, primarily consisting of fish. In contrast, the U.S. exported $52 million in goods to Micronesia in 2023. Despite the COFA and the significant trade imbalance favoring the U.S., Micronesia's average tariff on U.S. agricultural goods is reported to be 4.5%. The "reciprocal" nature of the U.S. tariff suggests the administration believes Micronesia imposes tariffs on U.S. goods, justifying the U.S. action.   Impact: Given the relatively small value of goods Micronesia exports to the U.S., the direct impact of the 10% tariff on Micronesia's economy might be limited. However, it has raised questions and concerns because of the special relationship under the COFA, where such broad tariffs were perhaps unexpected. In summary, as of April 20, 2025, imports from Micronesia to the United States are subject to a 10% tariff as part of the broader "reciprocal tariff" policy. This applies despite the Compact of Free Association, which already outlines specific tariff conditions for certain goods. The long-term implications and potential adjustments to this policy for COFA nations remain to be seen.

US Negotiation Strategy

Based on available trade data, the top imports to the US directly from Micronesia are quite limited in variety and overall value. In January 2025, the top imports were: Coral and Shells ($15.7k)   Commodities not elsewhere specified ($14.2k)   Cabbages ($8.42k)   Looking at broader 2023 data, the top exports from Micronesia to the world (a significant portion of which may indirectly reach the US or represent potential US imports) include: Non-fillet Frozen Fish ($179M) Fish Fillets ($5.28M) Diamonds ($1.01M) Non-Knit Women's Suits ($554k) Processed Fish ($412k)   Considering these categories, here are US states that can manufacture similar goods, along with example companies: Fish and Seafood (Frozen and Processed): Alaska: Known for its large commercial fishing industry, processing various types of fish like salmon, cod, and pollock. Example Companies: Trident Seafoods, Icicle Seafoods.   Washington: Another major seafood producing state with significant processing facilities. Example Companies: Cooke Aquaculture Pacific, Ocean Beauty Seafoods. Massachusetts: Has a long history of fishing and seafood processing, particularly for species like cod, haddock, and lobster. Example Companies: Legal Sea Foods (also a restaurant chain with processing), North Coast Seafoods. Maine: Specializes in lobster and other shellfish, but also processes finfish. Example Companies: Luke's Lobster, Calendar Islands Maine Lobster. Diamonds: While the US does have some small-scale diamond mining operations (e.g., in Arkansas), it does not have significant natural diamond mining compared to major global producers. The US is primarily involved in the cutting, polishing, and trading of diamonds. States involved in diamond processing/trading: New York (Diamond District), California, Florida. Example Companies (processing/trading): Lazare Kaplan International, Leo Schachter Diamonds. Apparel (Non-Knit Women's Suits): The US apparel manufacturing industry has significantly declined over the decades, with much production moving overseas. However, some companies still produce higher-end or specialized clothing domestically.   States with remaining apparel manufacturing: California (Los Angeles Fashion District), New York (garment district, though smaller now), North Carolina. Example Companies (though may not specifically focus on non-knit women's suits and examples are more general apparel): American Giant, Brooks Brothers (some US production). Coral and Shells (for decorative/other purposes): Harvesting of natural coral is heavily regulated or prohibited in many US waters due to environmental concerns. Any US "manufacturing" would likely involve working with imported or sustainably sourced shells and coral (if permitted).   States with businesses working with shells and marine items: Florida, California, coastal states. Example Companies (often smaller, specialized businesses): Shell Factory and Nature Park (Florida - retail but represents the type of business), various craft and souvenir shops. Cabbages and other Vegetables: Many US states have significant agriculture and can produce cabbages. Leading cabbage-producing states: California, Florida, New York, Wisconsin, North Carolina. Numerous farming operations exist in these states; it's less about large "companies" and more about agricultural producers and cooperatives. Examples of large agricultural companies that might grow cabbage include Grimmway Farms (California), Duda Farm Fresh Foods (Florida). It's important to note that the scale of Micronesian exports to the US is currently very small. If these volumes were to increase significantly or the types of goods changed, the US manufacturing landscape might respond accordingly.

Investing in USA

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

Sources : ForbesUSDA 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.

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