Amman, August 17 (Petra) – The Economic and Social Council convened on Sunday to evaluate the economic repercussions of the US administration’s recent imposition of a 15% tariff on Jordanian exports to the US market.
The US tariff, effective from early August, forms part of a broader package of trade protectionist measures targeting multiple countries.
The session opened with an assessment of the divergent economic forecasts regarding the tariff’s impact on Jordan’s export sector. Several industry representatives argued that the relatively moderate tariff rate imposed on Jordanian goods, compared to higher duties levied on other nations, confers a relative competitive advantage, preserving Jordan’s export market share in the US.
Council chair Musa Shteiwi underscored that the development aligns with a comprehensive report previously prepared by the Council. The report included detailed econometric analyses of potential tariff impacts, including trade elasticity, terms of trade effects and recommendations aimed at mitigating adverse outcomes for Jordan’s export-dependent industries.
Shteiwi presented empirical data illustrating trends in trade volumes between Jordan and the US, as well as tariff rate comparisons for countries with similar export profiles.
The analysis highlighted the necessity for Jordan to leverage its comparative advantage amid shifting trade policy landscapes.
Jordan’s economic competitive edge is in key export sectors such as textiles, jewelry, pharmaceuticals, fertilisers and engineering goods.
Industry representatives noted that competing countries affected by the tariffs possess substantial production capacities and may engage in price competition by absorbing tariff costs, potentially exerting downward pressure on Jordanian exporters’ profit margins.
The convened called for targeted policy responses to transform tariff-induced challenges into economic opportunities.
Shteiwi announced plans to initiate broader sector-specific consultations to assess the microeconomic impacts and factor market adjustments.
The consultations aim to inform a strategic policy framework a comprehensive methodology paper designed to optimise Jordan’s trade resilience and support evidence-based government decision-making.
//Petra// AK
17/08/2025 17:43:56
