Between US isolation and Iraqi threats, customs duties put trade relations at risk.
Between US isolation and Iraqi threats, customs duties put trade relations at risk.
7-13-2025
Information / Baghdad..
During Donald Trump’s presidency, the United States imposed new 30% tariffs on Iraqi exports, sparking widespread controversy in Iraqi economic circles regarding the repercussions of this move on the national economy.
Although trade between Baghdad and Washington remains limited, particularly regarding Iraqi non-oil exports, observers believe the US decision could set a dangerous precedent that could impact Iraq’s future plans to diversify its economy and open up to global markets.
Economic expert Safwan Qusay told Al-Maalouma News Agency that the US move represents a new challenge for Iraq and requires the government to conduct a comprehensive review of trade relations and the trade balance between the two countries, ensuring fairness in commercial dealings and encouraging mutual growth.
He explained that it is necessary to negotiate an agreement that mitigates these measures by reducing tariffs on US goods imported into Iraq, in exchange for granting similar facilities to Iraqi goods.
Qusay noted that the immediate impact of the US decision may be limited, given the current limited flow of Iraqi exports to the United States. However, he warned of future repercussions if exports expand to include sectors such as iron, cement, and phosphates.
He emphasized that Iraq seeks to enable its banking sector to conduct direct financial transfers to US markets, which will contribute to strengthening trade confidence between the two sides and support bilateral investment plans.
In contrast, economic researcher Diaa Abdul Karim believes that the tariffs imposed by Trump will have no real impact on the Iraqi economy. This is because Iraq does not have significant exports to the US market, and its economy is almost entirely dependent on oil exports, which are not covered by these tariffs.
Abdul Karim criticized Trump’s economic policies, viewing them as a prelude to economic isolation that could harm the United States more than others, especially given its trade conflicts with several traditional partners, such as the European Union.
Abdul Karim added that the global market is not limited to the United States, and that Iraq can compensate for any shortfall or complexity in trade with the US by turning to alternative markets in Europe and Asia, especially since Iraq needs to expand its trading partner base and achieve greater balance in its economic relations.
Despite varying estimates of the actual impact of the US decision, the concern within Iraqi economic circles remains justified, especially given the absence of a clear trade policy by the Iraqi government to address such developments.
Many believe that Baghdad must move quickly to formulate a new economic strategy that restores balance to trade relations and reduces reliance on unreliable partners in their economic decisions.
Observers agree that the American move, whether it has a direct impact or not, highlights the fragility of the Iraqi economy in the face of external changes and reaffirms the need for deep economic reforms that guarantee independence and give Iraq greater capacity to confront international transformations with confidence and preparedness.
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