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  3. Full Tariff Exemption on U.S.-Bound Apparel Exports a Strategic Catalyst for Industrial Growth

Full Tariff Exemption on U.S.-Bound Apparel Exports a Strategic Catalyst for Industrial Growth

26/07/2026 | 10:39:05

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Full Tariff Exemption on U.S.-Bound Apparel Exports a Strategic Catalyst for Industrial Growth

AMMAN, July 26 (Petra) -- Industry leaders and sector representatives have hailed the complete exemption of Jordanian apparel and textile exports to the United States from customs tariffs as a transformative catalyst designed to ignite a new era of industrial expansion, beyond serving as a temporary trade advantage.

The announcement came after Minister of Industry, Trade and Supply Yarub Qudah confirmed that all forms of Jordanian garment and textile exports to the U.S. will enter completely duty-free under the bilateral reciprocal trade agreement signed in Washington last Tuesday.

Economic stakeholders told the Jordan News Agency (Petra) that the zero-duty regime offers American buyers and major brands a compelling incentive to expand sourcing from Jordan. This is expected to drive order volumes, elevate factory production capacities, and attract substantial foreign direct investment (FDI) into the Kingdom.

CEO of international garment manufacturer Pine Tree, Moath Al-Sa'aideh, described the decision as a major economic milestone. He noted that while global trade faces supply chain disruptions, rising production costs, and a resurgence of protectionist tariffs on competing export hubs, Jordan stands out due to its stable, highly competitive market access to the U.S.

"This full exemption gives our sector a powerful push forward," Al-Sa'aideh said, adding that foreign buyers now have stronger incentives to shift production orders to Jordan. He emphasized that the ripple effects will extend to the broader economy by boosting foreign currency inflows, narrowing the trade deficit, generating jobs, and fostering local supply chain industries such as dyeing, packaging, and logistics.

Representative of the Leather and Garment Sector at the Jordan Chamber of Industry, Eng. Ihab Qadri, stated that the zero-tariff entry gives Jordanian products an immediate pricing edge as global buyers realign supply chains.

Qadri noted that these developments align directly with the targets of Jordan’s Economic Modernization Vision, which aims to attract $3.1 billion in new investments into the sector, expand total exports to $5.5 billion, create 149,000 jobs for Jordanians, and achieve a 10 percent annual growth in added value. He estimated that Jordan possesses the immediate capacity to increase its exports to the U.S. market by more than $400 million.

Echoing these views, the Jordan Garment, Accessories, and Textiles Exporters Association (JGATE) highlighted that while key regional and Asian competitors--such as Vietnam, Bangladesh, Cambodia, India, Indonesia, Sri Lanka, and Turkey--face combined import duties reaching up to 29 percent on certain products, eligible Jordanian exports enter the U.S. at zero percent.

JGATE Chairman and CEO of Classic Fashion Apparel Industry, Sanal Kumar, emphasized that entry with zero base tariffs and zero additional duties provides American retailers with unparalleled pricing certainty and long-term supply chain stability.

Kumar added that Jordan’s proven manufacturing capability, skilled workforce, strict compliance standards, and strong ties with global brands position the Kingdom as a premier, resilient sourcing hub for international markets.

//Petra// AA

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