Iraqi PM: Four Measures to Address Impact of U.S. Tariff Increase

Iraqi PM's Media

Iraqi PM Mohammed Shia' Al-Sudani's meeting with Iraqi officials.

Iraqi Prime Minister Mohammed Shia' Al-Sudani presided over a meeting on Saturday, 5 April 2025, to address the economic and commercial consequences of the United States (U.S.) government's decision to raise customs tariffs.

According to a statement issued by the Prime Minister's Media Office and received by PUKMEDIA, the meeting discussed the economic and trade implications of the U.S. government's decision to raise customs tariffs on imports from various countries, the resulting effects on the global economy and crude oil prices, and the potential impact on the Iraqi economy.

They examined the Ministry of Trade's data, which showed that the trade balance gap between the two nations—rather than Iraq's customs duties on American goods—was the basis for the U.S. tariff increases on Iraqi goods. 

The data also showed that most of Iraq's imports of U.S. goods go through third-country markets because of particular business practices used by American companies when doing business with Iraq.

According to the statement, PM Sudani ordered that the necessary actions be taken in accordance with the higher interests of the national economy.

The measures included the following:

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 PM’s Office.



PUKMEDIA