Shafaq News/ Experts are divided on the impact of the US tariffs imposed by President Donald Trump, with some suggesting significant global economic disruptions, while others downplay the direct consequences for Iraq.
Speaking to Shafaq News, economic expert Abdul Rahman Al-Mashhadani warned that both Iraq and the United States would suffer from the tariffs. He explained that the new duties could trigger a global economic slowdown, leading to a drop in global oil demand and, consequently, lower oil prices. Since oil imports account for 95% of Iraq’s budget, Iraq would be significantly impacted by these price fluctuations.
“Iraq’s exports to the United States are limited to oil, ranging between 250,000 and 450,000 barrels per day. Imposing tariffs on Iraqi oil would raise prices for refined oil products in the US market, which could reduce demand if the US is able to secure oil from other countries at more favorable prices,” he said.
Meanwhile, economist Nabil Al-Marsoumi downplayed the direct impact of the tariffs on Iraq's oil revenues. “while Trump has levied tariffs on various imported goods, ranging from 10% to 48%, oil, gas, and refined products are exempt from these duties.”
Al-Marsoumi also noted that the tariffs on Iraqi exports to the US, which are set at 39%, will have minimal impact due to Iraq’s limited export volume to the US. However, he acknowledged that the broader global effects of the tariffs could harm international trade and economic growth, reducing global demand for oil and exerting downward pressure on crude prices.
“Crude oil prices have already fallen by $2 in response to the tariffs…the full impact on global oil prices will become more apparent in the coming days.”
The tariffs, aimed at raising the cost of imported goods in the US to protect domestic industries and provide government revenue, have already prompted retaliatory measures from other nations, which have imposed tariffs on US exports.