ECONOMIST: CUSTOMS TARIFFS PORTEND A GLOBAL RECESSION AND IRAQ WILL BE HARMED BY THE DROP IN OIL PRICES.
Economic expert Abdul Rahman Al Mashhadani confirmed that the United States’ imposition of customs tariffs on goods and commodities will have indirect effects on Iraq, even though the price increase will have a direct impact on the American market.
Al-Mashhadani explained to Al-Furat News Agency that “this policy will cause an increase in inflation rates within the United States, which will negatively impact American citizens with a general rise in prices depending on the importance of commodities.”
He explained that the indirect impact is the possibility of a global economic recession resulting from a decline in the volume of American, European and Canadian exports to European markets, due to reduced investments and the disruption of commercial activity due to the size of the American market.
Al-Mashhadani warned that “this recession will affect global industry, reducing demand for oil and leading to a decline in its global prices, which will indirectly harm the Iraqi economy, which depends heavily on oil revenues.”
Two days ago, US President Donald Trump announced the imposition of countervailing tariffs on most countries around the world, with rates ranging from 10% to 49%, including Iraq.
Trump designated April 2 as “Liberation Day.”