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Nepal

US Revised Tariffs (%)

10

Ease of doing business

theboardiQ Tariffs Dashboard:

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Revised Tariff %
Original Tariff %
Country Tariff Rate %
Share of US Imports % (1 implies <1%)
10
10
11.2
1
Exports (in USD Bill.) 2024
Imports (in USD Bill.) 2024
Balance (in USD Bill.) 2024
0.12
0.12
0

Implications

The trade situation between the US and Nepal, as of October 2025, is primarily defined by the new universal US tariff policy, which surprisingly gives Nepali companies a competitive advantage over their regional counterparts.

Here is an update on the US tariffs and their impact on Nepal:

Area

Status (October 2025)

Key Details for Nepal

Current US Tariff on Imports

10% (Implemented)

Nepal, as a country without a current US Free Trade Agreement, is subject to the 10% universal reciprocal tariff (the "Liberation Day" tariff) that was introduced in April 2025.

Previous Trade Status

Generalized System of Preferences (GSP) / Trade Preference Program expired

Nepal's special duty-free access for certain products to the US market (under the Nepal Trade Preference Program) has expired. The current 10% tariff applies to goods that were previously duty-free.

Formal Deals & Agreements

None

No new bilateral trade deal has been announced between the US and Nepal to exempt it from the current tariffs.

Tariff Advantage vs. Region

Significant

This is the most crucial factor. The US has imposed much higher reciprocal tariffs on other South Asian neighbors: 50% on India and 20% on Bangladesh. Nepal's rate is substantially lower at 10%.



Impact on Nepali Companies and Industries


The relatively low 10% tariff on Nepali goods, compared to the much higher tariffs on its neighbors, has created a significant—though challenging—opportunity for Nepali exporters.


Industry

Impact/Opportunity

Garments & Textiles

Major Opportunity: This is the most directly affected sector. With Indian exports facing a 50% US tariff and Bangladeshi exports facing 20%, global clothing brands and Indian garment manufacturers are reportedly showing strong interest in shifting production or sourcing to Nepal to benefit from the 10% tariff rate.

Handicrafts, Carpets, Pashmina

Increased Competitiveness: Niche Nepali products are now more competitive in the US market. For example, a Nepali carpet would face a 10% tariff, while comparable goods from India face a much higher rate.

Risk of Transshipment

High Risk: A major concern is that Indian companies may try to illegally re-label "Made in India" goods as "Made in Nepal" to evade the higher tariffs. If the US detects this transshipment, it could result in severe penalties for Nepal.

Inflation/Cost of Goods

Negative Indirect Impact: Nepal relies heavily on imports from India. The overall US-India trade tensions could lead to a weaker Indian Rupee, making raw materials and other essential goods imported from India more expensive for Nepali industries and consumers.


In summary, while the 10% tariff is a new cost for Nepali exporters, the high tariffs imposed on regional competitors have given the country a sudden, major competitive advantage, leading to a potential surge of foreign interest and investment in export-oriented sectors like garments.

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

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 : 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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