US Tariffs on Jordan: Economic impact and an important visit

When President Donald Trump introduced new tariffs on many imports, including those from Jordan, the decision had a clear impact on Jordan’s economy. Jordan has strong trade and political ties with the US, but these new trade restrictions made exporting goods to the US more expensive. While the goal of the US was to reduce its trade deficit, these tariffs also caused problems for friendly nations like Jordan.

The impact on Jordan is especially strong in industries that rely heavily on exports to the US, particularly the clothing and garment sector, which makes up about 23 per cent of Jordan’s total exports. Jordan mainly exports clothing, jewelry, fertilisers, pharmaceuticals, IT services and food products to the US In return, it imports machines, vehicles, chemicals, medical equipment, and processed food.

With higher tariffs, Jordanian products have become more expensive in the US market. This reduces their competitiveness compared to goods from countries that still enjoy duty-free access. As a result, Jordan’s exports could decline, putting pressure on the economy.

Although not all export sectors create many jobs or add significant value to the economy, the clothing sector is different. A 25 per cent drop in clothing exports to the US, as some studies expect, could lead to the loss of 10,000 to 15,000 direct jobs. Women would be hit the hardest, as they make up 60 per cent of the workforce in this sector.

In this context, Prime Minister Jaafar Hassan’s visit to Washington this week is especially important. In addition to its political significance, the visit aims to rebuild trade relations with the US on more balanced terms. Hassan met with the US Secretary of Commerce and the US Trade Representative to discuss key trade issues, especially the tariffs that are harming Jordan’s exports.

The Prime Minister’s message to US officials focuses on three main points: First, explaining the economic and social impact of the tariffs on Jordan. Second, requesting updates to older trade agreements to make it easier for Jordanian products to enter the US market. Third, encouraging more direct US investment in Jordan, especially in technology and renewable energy, to help offset the negative effects of past trade policies.

Today’s international environment is different from a few years ago. Global supply chain disruptions and inflation have led the US to look for trusted partners who can offer quality goods at competitive prices. This gives Jordan a chance, if it manages the situation wisely.

The Prime Minister’s visit is not just a formal event. It is a strategic opportunity to strengthen economic ties with Jordan’s top trading partner. With backing from global institutions like the World Bank and IMF, Jordan is in a good position to negotiate. If the visit leads to real progress on reducing tariffs, it could support economic growth, create jobs, and help achieve Jordan’s goal of raising exports by 30 per cent by 2030.

Raad Mahmoud Al-Tal is head of Economics Department – University of Jordan – r.tal@ju.edu.jo