“I’m afraid I’ll lose my job,” says Naeem, 33, an Indian man who has been living and working in a Jordanian garment factory for six years. “It’s like the Covid days,” he tells TRT World. 

Naeem is not his real name, as he prefers not to disclose his identity for fear of reprisal. 

According to a 2023 annual report by Better Work Jordan – an International Labour Organisation (ILO) initiative –, around 77,800 workers are employed in the export-oriented segment of the garment industry, with migrants comprising three-quarters of the workforce.

Like Naeem, a majority of these workers face a precarious future because of US President Donald Trump’s April 2 Liberation Day announcement of “global reciprocal tariffs” on imports from a host of countries, which he said would protect the country’s domestic industry, boost customs revenue, and reduce trade deficit. 

The tariffs targeting some of the US’s biggest trading partners ranged from 10 to 50 percent, causing an upheaval in financial markets. 

Jordanian exports to the US, which have attracted a 20 percent tariff, are likely to take a hit.

While the decision on the reciprocal tariffs came into effect on April 10, the duties have been delayed until July 9, according to the Trade Compliance Hub’s Trump Tariff Tracker . 

Once they kick in, Jordan’s vital sectors such as clothing, jewellery, fertilisers, and pharmaceuticals will be impacted and Jordan’s most balanced trade relationships with a major foreign market are likely to suffer.

Jordan-US trade

Jordan became a major trading partner with the US following the signing of the 2000 Free Trade Agreement (FTA), the first such agreement between the US and an Arab country, which eliminated tariffs and boosted exports. Additionally, the establishment of Qualifying Industrial Zones (QIZs) in 1996 allowed duty-free access to the US market for goods produced in Jordan with Israeli inputs, further accelerating trade ties.

By 2024, Jordanian exports to the US market rose to approximately $2.8 billion, compared to $2.5 billion year-on-year in 2023, an increase of approximately 15 percent, according to the Jordanian Department of Statistics (DOS).

However, Jordan’s imports from the US totalled $1.6 billion, resulting in a trade surplus favouring Jordan of $1.4 billion with a trade volume of $4.48 billion in 2024.

DOS figures show that Jordan exported 20 commodity groups to the US last year, with more than 95 percent coming from four main categories: clothing and textiles, jewellery, machinery and equipment, and fertilisers. Clothing topped this list at 63 per cent, exceeding $2.11 billion of total exports.

The Middle Eastern country’s imports from the US mostly comprised metal products, transportation equipment, grain, and medical devices. 

The proposed tariffs, say experts, threaten this trade balance, particularly in the garments sector, which employs tens of thousands of workers, especially women and refugees.

Ministry of Industry, Trade and Supply spokesman Yanal Al-Barmawi tells TRT World that the government is still negotiating with the US to reconsider the tariffs imposed on Jordanian exports, noting that “Jordan has strong relations with the United States in various fields”.

“The government is also taking measures to increase the competitiveness of Jordanian exports in various markets, including the US market, and is working to open new markets,” says Al-Barmawi.

“The private sector is familiar with the US market, and American consumers are familiar with Jordanian products in their markets,” he adds, noting the importance of the Free Trade Agreement (FTA) between the two countries.

Former US Ambassador to Jordan Yael Lambert confirmed last December that Jordanian exports to the US increased by more than 4,000 percent since 2001, creating job opportunities and supporting economic growth. 

Economic analyst Amer Al-Shoubaki has warned that imposing customs duties poses a direct threat to the future of Jordanian exports to the US, one of the main pillars of industrial growth in the country. 

“We must take urgent action to diversify our trade partnerships and search for alternative markets like Iraq, Syria, Turkey, and Eastern Europe, to reduce our dependence on the US market and mitigate the impact of this decision on the industrial sector,” Al-Shoubaki tells TRT World.

The weakest link

Local factory worker Amina (not her real name), from Jerash in Jordan, has been working in the garment industry since 2001. Single and without children, she tells TRT World that she supports her unemployed brother on a monthly salary of $324.

“I work eight-hour shifts under difficult conditions that have affected my health. I suffer from slipped disc and varicose veins,” says Amina, adding that she covers her own medical expenses.

With increased demand, Amina has been working longer hours, mostly standing up, which is difficult for a person suffering from a slipped disc and varicose veins.

“When I meet my target, management often asks me to help others, and I can’t say no,” she says. “If I don’t, I can be easily replaced if demand increases. And if demand slows down, I can still be laid off.”

Labour union member Mirvat Jamhawi, too, fears job loss, but said local workers may be spared.

“If those tariffs hit the garment sector, Asian labourers will be the worst off,” Jamhawi tells TRT World. “Hundreds of workers will be let go when their contracts end.” 

Despite assurances by Prime Minister Jaafar Hassan following his official visit to the US that the FTA protects Jordan from these tariffs,  the President of the General Union of Workers in Spinning, Textile and Clothing Industries, Fathallah Al-Omrani, tells TRT World that workers are still extremely “concerned” about the future of the industry.

A report published by the think tank Tamkeen for Legal Aid and Human Rights has pointed out that Jordan’s clothing and textile sector, dominated by foreign companies operating in free zones, benefits from government incentives and provides job opportunities, bolstering the economy.

The tariffs, the report said, are a violation of the FTA and Jordan has the right to complain to the World Trade Organisation (WTO).

The report has warned that the tariffs could trigger retaliatory measures from trade partners, such as counter-tariffs or economic sanctions, leading to trade wars that could escalate from mere economic disputes to diplomatic crises, impacting political relations.

Even though the constitutionality of the Trump administration’s tariffs are still being disputed in US courts, the uncertainty has been detrimental to Jordan’s garments industry, prompting the President of the Jordan and Amman Chambers of Industry, Fathi Al-Jaghbeer, to note in a press conference that this was an important lesson for all countries about the need to adopt reciprocal treatment policies and support national industries. 

“Jordan must take serious steps towards self-sufficiency through bolstering national industries as they are the first line of defence against any changes in international economic policies,” says Al-Jaghbeer. 

This piece is published in collaboration with Egab.