Iraq
Iraqi Prime Minister Mohammed Shia al-Sudani (center) chairs a meeting to address US tariffs on April 5, 2025. Photo: Iraqi PM's office
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ERBIL, Kurdistan Region - To mitigate Washington’s new tariffs, Baghdad will seek better trade ties with the United States through sector partnerships and opening outlets for American businesses, the office of Iraqi Prime Minister Mohammed Shia al-Sudani said on Saturday.
Sudani had a meeting that included the trade minister and the governor of the Central Bank to discuss the new tariffs and their impact on Iraq’s economy.
As a result of the meeting, Sudani issued four directives: develop direct bilateral trade through commercial agencies and sector partnerships, overhaul US-Iraq banking cooperation, renegotiate trade foundations for mutual benefit, and form an inter-ministerial committee to initiate dialogue with American counterparts.
Trump on Wednesday announced “reciprocal tariffs” on countries around the world. His presentation asserted that Iraq has placed 78 percent custom tariffs on US-made goods and products and so a 39 percent tariff will be imposed on Iraqi goods.
Sudani’s office disputed the figures.
“US tariff increases on Iraqi goods were based on the trade balance disparity between the two countries, and not due to customs duties imposed by Iraq on American goods,” his office stated.
The statement also noted that Iraq’s imports of US goods “are routed through markets in third countries” due to “specific commercial practices” adopted by American companies in their dealings with Iraq.
On Thursday, the financial advisor to the prime minister, Mazhar Mohammed Salih, told Rudaw that the impact of the tariffs will be “zero” as “Iraq has no exports to the United States” except oil and gas - both of which are spared from the new measures.
The tariffs will affect Kurdistan Region’s tomato paste exports, according to Kamaran Bajgr, deputy chair of Erbil’s chamber of commerce.
“The businessmen in the Kurdistan Region have to find replacements for the US market,” he told Rudaw on Saturday, adding that this is Erbil’s only export to the US.
Sudani had a meeting that included the trade minister and the governor of the Central Bank to discuss the new tariffs and their impact on Iraq’s economy.
As a result of the meeting, Sudani issued four directives: develop direct bilateral trade through commercial agencies and sector partnerships, overhaul US-Iraq banking cooperation, renegotiate trade foundations for mutual benefit, and form an inter-ministerial committee to initiate dialogue with American counterparts.
Trump on Wednesday announced “reciprocal tariffs” on countries around the world. His presentation asserted that Iraq has placed 78 percent custom tariffs on US-made goods and products and so a 39 percent tariff will be imposed on Iraqi goods.
Sudani’s office disputed the figures.
“US tariff increases on Iraqi goods were based on the trade balance disparity between the two countries, and not due to customs duties imposed by Iraq on American goods,” his office stated.
The statement also noted that Iraq’s imports of US goods “are routed through markets in third countries” due to “specific commercial practices” adopted by American companies in their dealings with Iraq.
On Thursday, the financial advisor to the prime minister, Mazhar Mohammed Salih, told Rudaw that the impact of the tariffs will be “zero” as “Iraq has no exports to the United States” except oil and gas - both of which are spared from the new measures.
The tariffs will affect Kurdistan Region’s tomato paste exports, according to Kamaran Bajgr, deputy chair of Erbil’s chamber of commerce.
“The businessmen in the Kurdistan Region have to find replacements for the US market,” he told Rudaw on Saturday, adding that this is Erbil’s only export to the US.
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