jordan pulse -

By: Ahmad Abdelbaset Rjoub
Jordanian writer and researcher

In a surprising move, U.S. President Donald Trump announced the imposition of a 20% tariff on all imports to the United States, including Jordanian exports. This decision poses a major challenge to Jordan’s economy, threatening the loss of one of its most vital export markets, which has long been a key pillar of the national economy.

In light of these developments, there is an urgent need for swift official and diplomatic action toward Washington to negotiate either an exemption for Jordan or a mitigation of the negative impact of this decision on the country’s economic interests.

Trade Exchange at Stake
Although the trade partnership between Amman and Washington is not among the largest globally, the U.S. market represents a strategic outlet for Jordanian industries—particularly textiles, pharmaceuticals, and fertilizers—given Jordan’s benefits from bilateral free trade agreements.

- The value of Jordanian exports to the U.S. reached $3.12 billion in 2024, marking a 12.8% increase from the previous year.

- In contrast, Jordan imported $1.88 billion worth of goods from the U.S.

- This resulted in a trade surplus of $1.24 billion in Jordan’s favor—a surplus now at risk due to the new tariffs.

Implications of the Decision on the National Economy
1. Declining Competitiveness: The new tariffs will raise the prices of Jordanian products in the U.S. market by 20%, leading to reduced demand—especially in export-dependent industries.

2. Job Losses Threat : Many local industrial sectors risk losing thousands of jobs due to shrinking exports and slowed production.

3. Pressure on the Trade Balance: A decline in exports and higher import costs—if Jordan takes retaliatory measures—could turn the trade surplus into a deficit.

4. Investment Decline: Jordan may lose some of its appeal as a manufacturing hub targeting the U.S. market, potentially affecting future investment inflows.

An Urgent Roadmap to Address the Crisis
1. Immediate Diplomatic Action:

- Dispatch an official delegation to Washington to negotiate with the U.S. administration.

- Activate political and diplomatic channels to mitigate the impact or secure an exemption for Jordan.

- Resort to the World Trade Organization (WTO) to challenge the decision if necessary.

2. Diversifying Export Markets:

- Explore alternative markets in the EU, Africa, and East Asia.

- Activate agreements such as Agadir and the Greater Arab Free Trade Area (GAFTA).

3. Establishing a Sovereign (Investment) Fund to Support Industries:

- Create a sovereign fund with an initial capital of no less than 200 million dinars to finance export industries and help penetrate new markets.

4. Supporting National Industries:

- Provide credit facilities and tax incentives for export-oriented industries.

- Develop local supply chains to enhance efficiency and reduce reliance on imports.

5. Strengthening Regional Integration:

- Enhance trade partnerships with Arab countries and expand regional trade exchange.

6. Innovation and Quality Assurance:

- Invest in research and development to improve the quality of Jordanian products.

- Encourage factories and companies to obtain international certifications to access new markets.

A Crisis or an Opportunity?
The reality compels Jordanian decision-makers to act swiftly. We stand at a critical juncture:
Either we turn this crisis into an opportunity to restructure the economy and diversify our markets, or we face repercussions that could undermine years of economic growth.

"Overcoming crises does not come from waiting—but from smart and bold action… Time is not against us, but it will not wait for us."