US tariffs on Iraq aim to curb Iran's influence

Shafaq News – Washington

The US administration, under President Donald Trump, has imposed steep tariffs on Iraq, a move experts suggest is intended to isolate Iraqi Prime Minister Mohammed Shia Al-Sudani and his newly formed “Reconstruction and Development” electoral coalition, Real Clear World reported.

Analysts indicate the measures may also be aimed at encouraging Baghdad to normalize relations with Israel while limiting Tehran’s influence.

In July 2025, Trump threatened tariffs on 14 countries, including key allies such as Japan and South Korea, demanding new trade agreements or duties of up to 40 percent. Iraq was later added to the list, despite having limited trade ties with the US.

By the end of July, the White House finalized a 35 percent tariff on Iraq, an increase from the 30 percent initially proposed to Prime Minister Al-Sudani. Iraq exported $1.7 billion worth of goods to the US in 2024, while imports, mainly crude and refined oil, reached $7.5 billion, resulting in a trade deficit of nearly $6 billion favoring Iraq.

The tariffs have raised concerns in Baghdad, prompting questions about the potential political and economic impact on Al-Sudani’s coalition and the future of Iraq’s ties with the US.

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