Al-Sudani chairs meeting to assess impact of US tariffs on Iraqi economy

BAGHDAD — Iraqi Prime Minister Mohammed Shia Al-Sudani on Saturday chaired a meeting to assess the economic and trade impact of recent U.S. tariff increases. According to a statement from Al-Sudani’s media office, the meeting reviewed Ministry of Trade data that indicated “the majority of Iraq’s imports of U.S. goods are routed through markets in third countries.”

Al-Sudani directed several measures, including to “enhance banking services between the financial and banking sectors of Iraq and the United States to ensure the achievement of mutual economic interests,” the statement read.

On April 2, U.S. President Trump unveiled a comprehensive set of tariffs affecting a broad range of U.S. imports. Dubbed “Liberation Day,” the initiative introduces a universal 10% tariff on all imported goods, with higher, country-specific tariffs targeting nations with substantial trade imbalances with the United States.

Previously, Farhad Alaaldin, foreign affairs adviser to the Iraqi prime minister said that Iraq’s energy exports, including crude oil, will not be affected by the tariffs announced by U.S. President Donald Trump.

Statement from Al-Sudani’s media office:

Prime Minister Mohammed S. Al-Sudani chaired a meeting today, Saturday, to review the economic and trade implications of the decision by the United States government to increase customs tariffs on imports from various countries, and the resulting effects on the global economy and crude oil prices, as well as the potential impact on the Iraqi economy.

The meeting reviewed data provided by the Ministry of Trade, which revealed that the U.S. 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.

The data further indicated that the majority of Iraq’s imports of U.S. goods are routed through markets in third countries, due to specific commercial practices followed by American companies in their dealings with Iraq.

In light of this, and in order to ensure the best course for the growth of the Iraqi economy, Prime Minister Al-Sudani directed that necessary measures be taken in line with the higher interests of the national economy, as follows:
1. Work on developing trade relations by opening channels for U.S. distributors and commercial agencies, activating Iraqi commercial agencies, and facilitating direct trade between corresponding sectors in Iraq and the United States.
2. Enhance banking services between the financial and banking sectors of Iraq and the United States to ensure the achievement of mutual economic interests.
3. Instruct the negotiation team engaging with the U.S. side to review the foundations of the trade relationship with the aim of improving it and ensuring a balanced economic and trade partnership that serves the mutual interests of both sides.
4. The Ministry of Foreign Affairs, the Ministry of Finance, and the Ministry of Trade, along with relevant stakeholders, will initiate dialogue with their respective American counterparts to strengthen trade relations, monitor financial markets and economic consulting firms, and submit weekly reports to the Prime Minister’s Office.