Traders shut Baghdad markets after tariff hike

Shafaq News- Baghdad

Baghdad’s main markets shut down on Sunday as traders launched a general strike in protest against higher customs tariffs, halting commercial activity across the Iraqi capital.

Shafaq News correspondent reported widespread shop closures in major commercial districts, including Shorja, Al-Rasheed Street, Al-Rabie, Industrial Street, Karrada, and Jamila, in a coordinated action opposing the government’s decision to raise import duties.

The strike began late on Saturday and expanded by Sunday morning, traders told our agency, adding that markets would remain closed until authorities review the tariff decision and open talks with the commercial sector. The higher duties have increased import costs, driven up prices, weakened consumer demand, and led to slower sales and financial losses, they explained.

Some traders warned the strike could spread to other provinces if their demands are not met, while the government has yet to announce any plans to roll back or suspend the tariff measures.

Under Cabinet Decision No. 957 of 2025, the government elected to raise customs tariffs on imported goods as part of efforts to boost non-oil revenues. The decision broadened duties on a wide range of products and tightened enforcement at border crossings.

In the days leading up to Sunday’s shutdown, traders in Baghdad staged protests rejecting the tariff hike and calling for a suspension of its implementation, urging authorities to reconsider the decision and adopt alternative mechanisms that reflect current economic conditions. Shafaq News previously reported that the tariff measures contributed to congestion at border crossings, with containers held for extended periods, increasing costs for importers and disrupting trade flows.

Read more: Delayed reform or fiscal shock? Iraq’s tax measures test state capacity