Iraq announced that its oil trade with the United States will not face the new 30 percent US tariff. This decision gives Iraq major relief since oil forms most of its exports to America. It also protects Iraq’s economy from sudden shocks that could harm its revenue.
The Ministry of Trade confirmed oil exports remain free of extra charges. This allows Iraq to continue sending oil to the US without disruption. It secures vital income for the country, which depends heavily on oil sales to fund its budget.
Non-oil exports to the US are too small to cause any big problems. A ministry official explained that these exports make up a very minor share of trade. Still, Iraq is keeping a close watch on possible indirect effects on the global oil market.
Global oil prices could feel downward pressure due to the wider effects of tariffs worldwide. Falling prices would mean Iraq earns less from its biggest export. As a result, officials are discussing ways to protect the economy if such challenges arise.
To reduce risks, Iraq may explore new trade deals and strengthen partnerships with other major oil buyers. Diversifying export markets would help Iraq stay strong against global market shifts. It could also lower its reliance on a single trade partner like the US.
The US decision highlights the importance of Iraq in global energy supply chains. Iraq continues to play a key role in meeting US energy demands. This relationship strengthens Iraq’s position in the international oil market and supports its global influence.
At the same time, Iraq is working on boosting its non-oil sectors to balance its economy. Officials believe new investments in agriculture, industry, and technology could help reduce overdependence on oil. These steps aim to prepare Iraq for future challenges in global trade.
The government also plans to monitor world oil prices more closely in the coming months. Any sharp changes could still affect Iraq’s financial stability. By staying proactive, Iraq hopes to manage potential risks and keep its economy on track.
Experts say this exemption gives Iraq breathing room to focus on reforms. However, they also warn that the country needs long-term solutions for stronger economic resilience. Building new export industries could make Iraq less vulnerable to global trade disputes and price volatility.
