Iraq will remain unaffected by the newly announced U.S. tariffs, as the country’s only significant export to the United States—crude oil—is exempt from the measures, according to a top advisor to the Iraqi prime minister.
Mazhar Mohammed Salih, financial advisor to Prime Minister Mohammed Shia’ al-Sudani, told Rudaw that the impact of the tariffs on Iraq would be “zero”, since oil and gas exports are not subject to U.S. customs duties.
“Iraq has no exports to the United States subject to customs tariffs other than crude oil,” Salih noted.
The comments come after former U.S. President Donald Trump introduced a sweeping set of 10% baseline tariffs on imports from dozens of countries—targeting both rivals and allies alike in a bid to revive his protectionist trade agenda.
“If you want your tariff rate to be zero, then you build your product right here in America,” Trump declared during a press event outside the White House.
A visual chart presented by Trump listed Iraq among countries facing 39% tariffs on exports to the U.S., citing that Iraq imposes 78% tariffs on U.S.-made goods. However, Salih stressed that these new tariffs would have no practical impact on Iraq’s trade with the U.S.
Oil Exports and Strategic Agreements
Salih further explained that Iraq’s crude oil exports to the U.S. total less than $5 billion annually, and that the American market is secondary compared to China and India, which together absorb around 70% of Iraq’s oil exports.
He also noted that the 2008 U.S.-Iraq Strategic Framework Agreement (SFA) and the Status of Forces Agreement (SOFA) have helped shield Iraq from U.S. sanctions. These agreements formalize bilateral cooperation in areas such as security, politics, and economics, and played a pivotal role in defining the timeline for U.S. troop withdrawal after the 2003 invasion.
Source: Rudaw
