Jordan: New US tariffs could lead to job losses, industry shutdowns
'The timing of this decision is particularly concerning for Jordan, whose economy is already vulnerable and heavily dependent on foreign trade, especially with the US. This move raises urgent concerns about the impact on local industries and employment,' a Tamkeen statement sent to The Jordan Times said.
Titled "The Implications of the New US Tariffs on Jordan's Economy and Workers," the paper predicts that the 20 per cent tariff increase on Jordanian exports will drastically raise production costs, making Jordanian goods less competitive in comparison to imports from other countries. "This shift could force many companies, especially those in the garment and textile sectors, to scale back operations or shut down entirely," the report added.
Early estimates suggest that a 20 to 30 per cent reduction in Jordanian exports to the U.S. could result in the direct loss of between 10,000 and 15,000 jobs, with women bearing the brunt of the impact. Women account for over 60 per cent of the workforce in the textile industry, which is Jordan's primary export sector to the U.S. and represents 79 per cent of the country's total exports to that market, the statement said.
The new tariffs, announced by US President Donald Trump on April 2, were framed as part of a broader 'economic liberation' agenda. The measures also include a 25 per cent tariff on imported cars and a 20 per cent duty on all other foreign goods.
In 2024, the textile sector alone generated around $1.75 billion in exports and employed around 77,730 people. Of this workforce, 27 per cent are Jordanian nationals, while the remaining 73 per cent are migrant workers, primarily from South and East Asia. Much of the manufacturing in the sector takes place in foreign-owned firms located in Jordan's free zones, which benefit from state-provided incentives.
Tamkeen has raised concerns that the new tariffs could potentially violate the US-Jordan Free Trade Agreement (FTA), signed in 2000 and implemented in 2001.
In 2024, Jordan's exports to the U.S. amounted to $3.4 billion, a 15.4 percent increase from the previous year. Major exports included textiles and apparel ($1.75 billion), jewelry and precious stones ($900 million), fertilisers ($130 million), pharmaceuticals ($90 million), and machinery ($80 million), according to Tamkeen.
Samira Dasouqi, a garment worker, said: 'My job is the only source of income for my household. Now we are hearing that factories might reduce shifts. I truly have no other option if this job disappears.'
Economist Waseem Hussein highlighted the broader economic risks, noting, 'The ripple effects will be felt across supply chains and employment. Without swift policy responses or trade diversification, the economic shock could deepen.'
© Copyright The Jordan Times. All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
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