US Imposes 30% Tariff on Iraq in Push for ‘Fairer’ Trade Terms

INA

US President and Iraqi PM.

United States’ President Donald Trump has officially notified Iraq of a 30% tariff on all imports into the United States from Iraq, effective 1 August 2025, in what he calls a move toward “more balanced and fair trade.”

In a formal letter addressed to Iraqi Prime Minister Mohammed Shia’ al-Sudani, dated 9 July 2025and issued from The White House, Trump expressed the U.S.’s willingness to maintain economic relations with Iraq—but under what he described as “reciprocal” terms. The letter cites a persistent trade deficit, which Trump blames on Iraq’s “Tariff, and Non-Tariff, Policies and Trade Barriers.”

“Starting on August 1, 2025, we will charge Iraq a Tariff of only 30% on any and all Iraqi products sent into the United States,” the letter states. Goods transshipped to evade the tariff will also be subject to the same rate. However, Trump made clear that the tariffs could be revised or lifted if Iraq opens its markets and addresses trade imbalances.

The U.S. President also offered a possible exemption, noting that the tariff would not apply if Iraqi companies chose to manufacture within the United States. “In fact, we will do everything possible to get approvals quickly, professionally, and routinely – in a matter of weeks,” the letter reads.

Trump’s message warned that any retaliatory move by Iraq—such as raising its own tariffs—would result in additional charges on top of the 30%. He emphasised that these steps were not just economic, but also linked to what he referred to as U.S. national security interests.

“These tariffs are necessary to correct the many years of Iraq’s Tariff, and Non-Tariff, Policies and Trade Barriers, causing these unsustainable Trade Deficits against the United States,” Trump asserted.



PUKMEDIA