Amman, July 24 (Petra)-- The industrial sector has welcomed the reciprocal trade agreement between the Hashemite Kingdom of Jordan and the United States, describing it as a strategic milestone that strengthens bilateral economic ties and enhances the competitiveness of Jordanian exports in one of the world's largest markets.

In a statement issued on Friday, President of the Jordan Chamber of Industry Fathi Al-Jaghbir said the decision to maintain the additional U.S. tariff on Jordanian goods at 10 percent places Jordan among the countries facing the lowest U.S. tariff rates compared with many competing exporters. He said the move would help preserve and expand Jordan's market share in the United States.

Al-Jaghbir noted that the agreement extends beyond tariffs, promoting cooperation in investment, supply chains, and digital trade while providing a more stable business environment for exporters and investors. He said the deal further strengthens Jordan's position as a reliable manufacturing and export hub, supported by its political stability, industrial base, and extensive network of international trade agreements.

He highlighted the importance of the U.S. market as the largest single destination for Jordan's industrial exports, which exceed JD2 billion annually. Bilateral trade has grown significantly from approximately $232 million in 2001 to $3.08 billion in 2025, while the number of Jordanian products exported to the United States increased from 172 in 2019 to nearly 390 in 2025, reflecting the growing diversity and competitiveness of Jordan's industrial sector.

Al-Jaghbir stressed that the new agreement complements rather than replaces the Jordan-U.S. Free Trade Agreement. Most qualifying Jordanian products, he said, will continue to enter the U.S. market with a zero percent base tariff, while the additional tariff remains capped at 10 percent, preserving Jordan's competitive advantage over many rival exporting countries.

He praised the efforts of His Majesty King Abdullah II, the Jordanian government, the Kingdom's Embassy in Washington, and the national negotiating team, saying the achievement reflects successful cooperation between the public and private sectors and is expected to attract further export-oriented industrial investment while strengthening Jordanian industry's presence in the U.S. market.

Meanwhile, Ihab Qadri, representative of the Leather and Garments Industries Sector at the Jordan Chamber of Industry, said confirmation by the Office of the United States Trade Representative that a broad range of Jordanian leather and textile products will remain exempt from the additional U.S. tariffs represents a major achievement that safeguards the sector's competitiveness and preserves the benefits provided under the Jordan-U.S. Free Trade Agreement.

Qadri explained that the decision goes beyond maintaining duty-free access for apparel, extending exemptions to most products within the leather and textile sector. As a result, the majority of Jordanian products that meet the rules of origin will continue to enter the U.S. market with a zero percent base tariff.

The exemptions cover apparel and knitwear, bags and leather goods, carpets and rugs, bed linens and home furnishings, towels, curtains, yarns, fabrics, production inputs, and a wide range of other textile products. Qadri said the decision supports the competitiveness of the sector's entire value chain, from raw materials and manufacturing inputs to finished export products.

He added that the United States remains the primary export market for Jordan's leather and garment industry, with annual exports reaching approximately $2.2 billion. The sector includes more than 1,000 industrial establishments and provides around 100,000 jobs, making the preservation of its competitive advantages essential for sustaining growth and supporting the national economy.

According to Qadri, the decision will strengthen the confidence of global brands and investors in Jordan as a dependable manufacturing and export base, while encouraging new investments, expanding supporting industries, increasing local value-added, and deepening industrial supply chains.

He also commended the Royal efforts, the government, the Ministry of Industry, Trade and Supply, Jordan's Embassy in Washington, the national negotiating team, and all public and private sector stakeholders involved in preserving the sector's competitive advantages in the U.S. market. He said the agreement is expected to positively impact exports, investment, and employment while reinforcing Jordan's position as a regional hub for export-oriented apparel and leather manufacturing.

//Petra// MF