Ease of doing business
theboardiQ Tariffs Dashboard:
Powering Mutually Beneficial Global Trade.
Understand the complexities of international tariffs and ease of doing business across nations to cultivate balanced trade relationships, streamline operations, and deliver cost savings to end consumers.
Implications
Here is an update focusing on the U.S. tariffs, trade deals, and the unique situation with the Federated States of Micronesia (FSM):
US Tariffs Update: Deals and Agreements - Micronesia
1. New US Tariffs and Agreements (Global Context)
The primary trade policy development in 2025 is the implementation of new, broad-based tariffs under the authority of the International Emergency Economic Powers Act (IEEPA), based on a declared national emergency over the US trade deficit.
Tariff Measure | Status (October 2025) | Key Details |
Universal Baseline Tariff | 10% (Implemented) | A minimum 10% "reciprocal tariff" applies to almost all imports from countries not subject to other sanctions/deals (effective April 2025). |
De Minimis Exemption | Suspended (Implemented) | The exemption that allowed small-value shipments ($800 or less) to enter the U.S. duty-free has been revoked for virtually all countries. |
Trade Deals | Preliminary Agreements | The Administration has announced preliminary tariff agreements with a few partners (e.g., the UK, EU, Japan, South Korea) to cap or modify tariffs. |
New Sectoral Tariffs | Implemented/Pending | New tariffs have been imposed on specific products like certain steel, aluminum, copper, and, recently, lumber and wooden furniture imports, regardless of origin. |
2. Micronesia and the Compact of Free Association (COFA)
The trade relationship with the Federated States of Micronesia (FSM) is governed by the Compact of Free Association (COFA), a special security and economic arrangement.
Area | Status (October 2025) | Impact on FSM |
US Tariffs on FSM Goods | 10% (Implemented) | The FSM is now subject to the 10% universal reciprocal tariff. This is in addition to the few product-specific tariffs (like certain fish, watches, and apparel) already noted in the COFA. |
Trade Status | Compact State | The COFA allows FSM citizens to live and work indefinitely in the U.S., provides significant U.S. financial assistance, and grants the U.S. strategic denial rights over a vast area of the Pacific. |
COFA Funding | New Agreements Pending Funding | Although new 20-year agreements for economic assistance were negotiated with the FSM, Marshall Islands, and Palau, securing the full funding remains a subject of debate in the U.S. Congress. |
The imposition of the 10% tariff on a Compact State like FSM is notable because of the unique, preferential relationship, though the direct economic impact is limited as FSM's goods exports to the U.S. are generally small.
3. Companies and Economic Impact
The new tariffs have a broad impact on companies globally, but the effect related specifically to Micronesia remains contained:
Impact on FSM Exporters: Micronesian companies exporting goods (primarily fish/seafood) to the U.S. now face the new 10% baseline tariff and existing product-specific duties. The overall small volume of trade means the direct tariff cost is low but still adds a burden to small economies.
Impact on US Companies:
Importers: U.S. companies that import goods from all non-exempt countries are facing increased costs due to the 10% universal tariff and the suspension of the de minimis exemption, which hurts small businesses that rely on low-cost, direct shipments.
Exporters: The global trade uncertainty and retaliatory measures from other countries (especially China, where tariffs are sharply escalating) are impacting U.S. exporters.
Strategic Focus: The most significant U.S. corporate and strategic interest in the FSM is related to the Compact of Free Association (COFA). The stability of the COFA is crucial for U.S. military access and regional security in the Pacific, which affects U.S. defense contractors and strategic interests. FSM also receives multi-million dollar U.S. grants that support U.S.-sourced infrastructure and other projects.
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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.
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 |