Iraq has announced a strategic response to the United States’ recent increase in customs tariffs, which affects imports from all countries, including Iraqi goods. Prime Minister Mohammed Shia Al-Sudani chaired an emergency meeting on Saturday to assess the economic fallout and outline protective measures.
Government analysis revealed that the US tariff hike stems from broader trade imbalances rather than retaliation against Iraq. Notably, most American goods enter Iraq indirectly through third-party markets due to existing trade practices.
To mitigate risks and strengthen economic ties with the US, Al-Sudani unveiled a four-pronged strategy:
- Trade Facilitation – Streamlining direct commerce by encouraging US distributors and Iraqi agencies to establish formal trade channels.
- Banking Cooperation – Enhancing financial collaboration between Iraqi and US institutions to support shared economic objectives.
- Trade Policy Review – Tasking negotiators with restructuring the US-Iraq trade framework to ensure fairness and mutual benefit.
- Diplomatic Outreach – Mobilizing the Foreign, Finance, and Trade Ministries to engage US officials, monitor markets, and submit weekly progress reports.
The move follows discussions within Iraq’s Shiite-led Coordination Framework, which convened earlier to address broader economic challenges.
The US tariff adjustments, expanding on policies initiated under former President Donald Trump, include steep rates such as 34% on Chinese goods and 20% on EU imports. Economists warn these measures risk global trade tensions and economic instability.
