**Washington**: Recent tariff decisions by the Trump administration have raised concerns in Iraq and Tunisia. With Iraq facing a 39% tariff and Tunisia 28%, both nations must reassess their economic strategies to mitigate impacts on trade relationships and domestic industries amidst evolving global dynamics.
In a significant shift in international trade dynamics, recent decisions by the Trump administration regarding tariffs have sparked widespread concerns and discussions in both Iraq and Tunisia. These policy changes, which were announced during a White House event on April 4, 2025, aim to impose comprehensive tariffs on most U.S. trading partners, with rates ranging from 10% to 49%. Notably, Iraq faces a tariff rate of 39%, placing it among the highest levels for Arab nations. Iraq has long relied on the U.S. market for oil exports, making the implications of these tariffs particularly significant.
Speaking to Al-Masla, economist Ziad Al-Hashemi commented on the complexity of the situation, stating that “Iraq has a trade surplus exceeding $6 billion, most of which comes from exporting crude oil to the United States.” He suggested that the actual impact of the new tariffs might primarily be felt by American consumers rather than Iraq itself. The data indicates that trade between Iraq and the U.S. has seen substantial growth in recent years, with Iraqi exports to the U.S. surpassing $10 billion annually, primarily composed of oil.
While Iraqi officials are assessing the potential effects of these new tariffs, experts like Nabil Al-Marsoumi have attempted to downplay any negative implications, citing that U.S. imports of oil and gas remain exempt from tariffs. Nonetheless, Al-Marsoumi noted that a forthcoming decline in global crude prices could occur, as evidenced by a two-dollar drop immediately following Trump’s announcement.
In parallel, Tunisia faces its own challenges arising from the new tariffs, with a proposed 28% tariff on Tunisian products exported to the U.S. impacting a trade balance that previously benefitted Tunisia. Tunisian exports to the United States total approximately $1.1 billion annually, while imports are valued at about $600 million. Products that are predominantly exported include agricultural goods, such as olive oil and dates, alongside mechanical and electrical products.
Economic expert and former Trade Minister Mohsen Hassan expressed that the implications of these tariffs extend beyond Tunisia, suggesting potential widespread impacts on the global economy, including strained financial markets and a potential recessionary spiral. He warned that as European demand for Tunisian exports could decline due to the broader implications of a trade war, the repercussions may be felt across various sectors in Tunisia, especially those linked to European markets.
In light of these developments, both Iraq and Tunisia are prompted to reassess their economic strategies. Potential recommendations for Tunisia include diversifying economic partners away from Europe, revising trade agreements to ensure fairness, and protecting local industries through increased tariffs on imports in order to bolster domestic production. The geopolitical landscape suggests that these tariff changes may also carry political signalling for countries that maintain close commercial ties with China, as evident in the less severe increases faced by Arab nations with stable terms in their free trade agreements.
As both nations navigate these complex economic changes, the path forward remains to be seen, with growing concerns over how these protective measures will reshape their trade relationships and economic stability amid an evolving global marketplace.
Source: Noah Wire Services
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