Baghdad: The Ministry of Trade affirmed today, Thursday, its full readiness to take all necessary measures to protect the local market and ensure the stability of supply chains and product prices, following the recent US decision to impose a 30% tariff on Iraqi imports to the United States, effective August 1, 2025.
According to National Iraqi News Agency, the Ministry of Trade Spokesman Mohammed Hanoun stated that the US presidential decision issued on July 9, 2025, is part of the reciprocal tariff policy pursued by the US President’s administration to control the trade deficit. He indicated that Iraqi exports to the United States amounted to $7.4 billion in 2024, compared to a US trade surplus estimated at $5.8 billion, making the decision directly impact Iraq’s trade balance.
He explained that the Ministry, in coordination with the Ministries of Foreign Affairs and Finance, has formed a negotiating team to discuss with the US side the possibility of postponing the implementation of the decision, reducing tariff rates, or exempting some vital sectors from the decision. The Iraqi Embassy in Washington has also been tasked with conducting immediate contacts with US officials to explain the extent of the expected economic impact.
To address the repercussions, Hanoun announced plans to diversify export markets and reduce dependence on the US market, in addition to supporting the agricultural and industrial sectors to enhance their competitiveness and secure trade alternatives. He pointed to a package of internal measures that includes providing exemptions or partial support to affected small and medium-sized enterprises, providing temporary financial support to exporters to ensure the continuity of their activities, and expediting customs and logistical procedures.
He emphasized that the government is working to strengthen the economic infrastructure, including tax and legislative reforms, as well as including productive projects in the 2025 budget with the aim of strengthening the local economy and boosting national exports.
Hanoun stressed continued coordination with all national and international parties to overcome the challenges resulting from the American decision, affirming the government’s commitment to protecting the interests of Iraqi producers and exporters and ensuring sustainable growth and diversifying trade partnerships.