Estimated at $6 billion, the US aims to reduce its trade surplus with Iraq through customs duties, 5 APRIL

  Estimated at $6 billion, the US aims to reduce its trade surplus with Iraq through customs duties.

The United States has imposed tariffs on Iraqi exports as part of an economic policy aimed at narrowing the trade gap between the two countries. This move is part of US President Donald Trump's strategy, which has targeted several countries that have a trade surplus with the United States.

According to economic researcher Ziad Al-Hashemi, "Iraq currently enjoys a trade surplus estimated at approximately $6 billion, most of which stems from oil exports to refineries in Texas and California, which Washington is seeking to reduce by imposing customs duties on Iraqi exports."

Al-Hashemi explained in a blog post followed by the Iraq Observer that the US administration aims to achieve several goals through these tariffs, most notably:

• Reducing Iraq's trade surplus by making its exports to the United States less competitive.
• Encouraging Iraq to increase its imports of American products, which could strengthen trade relations between the two countries for the benefit of American companies.
• Influencing Iraqi economic policy by pushing Baghdad to open its economy more broadly to American investments and companies.

Al-Hashemi emphasized that "Iraq has alternative options if these tariffs continue to be imposed, most notably redirecting its oil exports to other markets, which could negatively impact American companies that rely on Iraqi oil, in addition to the possibility of higher fuel prices in the United States."

He pointed out that "the door to negotiations between Baghdad and Washington remains open, as the Iraqi government seeks solutions to minimize the impact of these tariffs on its economy, emphasizing that Iraq possesses powerful leverage, most notably the importance of its oil in meeting some of the needs of the American market."

The Iraqi economic community is awaiting developments in this crisis, amid fears that US pressure will force Iraq to make economic concessions or increase its reliance on alternative markets to avoid potential losses.  link