Trump unveils 30% tariff on Iraq in latest batch of trade letters

The National

09-07-2025

Donald Trump announced a 30 per cent tariff on Iraqi imports on Wednesday, with the country becoming the latest to have received a so-called trade letter from the US President.
The latest tariff on Baghdad is 9 per cent lower than what Mr Trump had initially announced on the country on April 2. The White House this week extended its delayed implementation of the 'reciprocal tariffs' − set to go into effect on Wednesday − to August 1.
Mr Trump in April imposed a 10 per cent tariff on almost all trading partners.
His letter to Iraqi Prime Minister Mohammed Shia Al Sudani is nearly identical to those sent to other countries this week, including Japan and South Korea. The letter also contains a similar threat Mr Trump has made to the affected countries, warning them not to impose retaliatory measures.
'If for any reason you decide to raise your t ariffs, then, whatever the number you choose to raise them by, will be added on to the 30 per cent that we charge,' Mr Trump wrote in the letter, which he posted on social media.
The Iraqi embassy in Washington said there was no immediate response from Baghdad.
Mr Trump also announced tariffs of 30 per cent on Libya and Algeria, 25 per cent on Brunei and 20 per cent on the Philippines.
The President has framed the so-called reciprocal tariffs as a means to reduce the US trade deficit with certain countries.
US total goods exports to Iraq totalled $1.7 billion in 2024, according to the Office of the US Trade Representative, while imports from Iraq totalled $7.4 billion. The US goods trade deficit with Iraq was $5.8 billion last year, a 7 per cent decrease from 2023.
'We have had years to discuss our trading relationship with Iraq, and have concluded that we must move away from these long-term, and very persistent, Trade deficits engendered by Iraq's tariff, and non-tariff, policies and trade barriers,' Mr Trump wrote.
'Our relationship has been, unfortunately, far from reciprocal.'
Mr Trump also said the US would not impose tariffs on Iraq or Iraqi-based companies if they build or manufacture products within the US.
This latest batch of countries to have received the trade letters follows more than a dozen others, including Lebanon and Bangladesh, who received them this week.
The President on Tuesday also announced new tariffs on copper and pharmaceuticals.