2025-08-24T07:13:57+00:00

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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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