US tariff hikes, market volatility: Iraq needs crisis cell

Shafaq News/ On Thursday, Iraq’s Political Economic Center called on the government to establish a high-level crisis cell to monitor the ripple effects of global market volatility, US tariff hikes, and the surge in prices of key imports.

“The current and expected repercussions in global markets demand broader long-term thinking,” said Wissam Hadmal Al-Helou, the center’s director, in a statement. “A proactive, effective crisis cell is needed to track and assess the impact of US-imposed tariffs—whether immediate or delayed—and their influence on global pricing dynamics.”

Al-Helou warned that rising global tariffs will fragment production chains and increase manufacturing costs across various industries, inevitably driving up the prices of Chinese, American, and other foreign goods vital to Iraq’s domestic market. “Iraq’s dependence on imports for essential daily needs makes it particularly vulnerable,” he added.

While Iraq has achieved relative economic stability in recent years, the country now faces mounting fiscal pressures. The official pointed to a growing public payroll and a steep internal debt burden, now exceeding 83 trillion dinars (over $63 billion), coupled with a sharp drop in international oil prices—currently well below the benchmark price used in Iraq’s 2024 federal budget.

Al-Helou urged the government to diversify revenue sources beyond oil by activating tourism, agriculture, and industry, especially as the global economic standoff between the US, China, and other producers may fuel long-term market volatility.

“The world is entering a prolonged period of economic uncertainty. Iraq must stay ahead by tracking every global economic shift to minimize fallout from the next wave of disruptions,” he confirmed.