Iraq's oil exports to US will be unaffected by Trump's 30% tariff
According to Trade Ministry spokesperson Mohammed Hanoun, oil exports are free from the new levies, which means that the majority of Iraq's exports to the United States would remain unaffected, the Iraqi News Agency (INA) reported.
The Iraqi economy depends on oil exports for almost 90 percent of government revenue; therefore, the tariff exemption is critical to preserving economic stability.
Hanoun stated that non-oil exports from Iraq to the United States are currently insignificant, with any tariff impact being indirect.
The tariff waiver for oil exports provides major relief to Iraq, which depends significantly on petroleum income to pay government expenditures and essential services.
Trump sent a letter last week to Iraqi Prime Minister Mohammed Shia Al-Sudani informing him that the US administration will charge Iraq a tariff of 30 percent on all Iraqi products sent to the United States.
The percentage imposed by the US administration is far less than what is needed to eliminate the trade deficit disparity the United States has with Iraq, according to Trump's letter.
The US president clarified that there will be no tariff if Iraq, or Iraqi companies, decided to build or manufacture products within the United States.
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