RIYADH: Jordan and the US signed a reciprocal trade agreement that caps tariffs on exports from the Middle Eastern country at 10 percent and expands market access for both nations.
According to the Jordan News Agency, also known as Petra, the deal was signed on July 21 in Washington by the country’s Minister of Industry, Trade and Supply, Yarub Qudah, and US Trade Representative Jamieson Greer, following nearly a year of consultations between the two governments.
According to Bureau of Economic Analysis data, Jordan was the US’s 59th largest trading partner in 2025, with bilateral trade reaching $7.19 billion.
“The US commits to capping reciprocal tariffs on Jordanian imports at 10 percent and granting all segments of Jordan’s textile and apparel sector enhanced preferential access to the American market,” Petra reported.
Boost for Jordanian exports
The preferential treatment is expected to give a further lift to Jordanian exports to the US, which reached 595 million Jordanian Dinars ($839 million) in the first four months of this year alone, led by garments and textiles, jewelry and machinery, as well as electrical equipment and pharmaceuticals.
In return, Jordan will continue to offer duty-free treatment for US exports under the 2001 US-Jordan Free Trade Agreement.
Trade facilitation measures
The new pact also introduces measures to smooth trade operations, including strict enforcement of environmental laws, protection of labor rights, and robust intellectual property rights, as well as fair trade practices and modernized customs procedures, while working to eliminate non-tariff barriers that had limited market access for US goods.
Both sides said they would continue discussions on services trade and investment to dismantle remaining barriers and encourage bilateral investment flows.
Digital economy, supply chain, and security cooperation
The two countries also pledged to support an open, competitive digital economy, with Jordan committed not to impose customs duties on electronic transmissions, including digitally transmitted content.
“Jordan shall not impose customs duties on electronic transmissions, including content transmitted electronically,” the agreement, published on the White House’s website, read.
Jordan also agreed to back the World Trade Organization moratorium on customs duties for electronic transmissions.
Jordan and the US further agreed to reinforce supply chain resilience and coordinate on policies affecting global trade, along with joint efforts on investment security, export controls and combating duty evasion.
The agreement follows several recent commercial deals highlighting closer economic ties.
These include Royal Jordanian Airlines’ $1.4 billion purchase of six Boeing 787-9 Dreamliners and $500 million in long-term aircraft leases, as well as Hikma Pharmaceuticals’ pledge to invest $1 billion in the US by 2030.
Jordanian companies have also committed to purchasing more than $300 million of US raw materials annually.
