TRUMP AND SUDANI DEVELOPMENTS: A MESSAGE AND SEVERE REBUKE EXPLAINING THE 30% TAX
After the White House announcement
US President Donald Trump sent an official letter to Iraqi Prime Minister Mohammed Shia al-Sudani on Wednesday, announcing the imposition of a 30% tariff on all Iraqi products exported to the United States, starting August 1.
Trump explained in his letter that the decision came in response to what he described as Baghdad’s “unbalanced trade policies,” hinting at the possibility of raising the rate in the future if these policies continued.
He expressed his country’s readiness to ease these restrictions if the Iraqi government took steps to open its markets more widely and remove trade barriers to American products, as part of what he described as “reciprocal steps towards trade balance.”
Text of the letter sent by Donald Trump to Prime Minister Mohammed Shia al-Sudani regarding the US raising of taxes on Iraqi exports.
he White House,
Washington,
July 9, 2025
To His Excellency
Mohammed Shia Al-Sudani,
Prime Minister of the Republic of Iraq,
Baghdad
Dear Mr. Prime Minister,
It is a great honor for me to send you this letter, which demonstrates the strength and commitment of our trade relationship and the fact that the United States has agreed to continue working with Iraq, despite a large trade deficit with your great country. However, we have decided to move forward with you, but only through more balanced and equitable trade.
Therefore, we invite you to participate in the exceptional economy of the United States, the largest market in the world by far. We have had years of discussions about our trade relationship with Iraq, and we have concluded that we must move away from these long-standing and very persistent policies, which have caused a trade deficit through Iraq’s tariffs, non-tariff policies, and trade barriers.
Our relationship to date has, unfortunately, been far from reciprocal. Effective August 1, 2025, we will impose a 30% tariff on all Iraqi products shipped to the United States, separate from any other sectoral tariffs. Transshipped goods to avoid the higher tariff will also be subject to this tariff.
Please understand that the 30% rate is far less than what is needed to close our trade deficit with your country. As you know, if Iraq or companies within your country decide to build or manufacture products in the United States itself, there will be no tariffs. We will then do everything we can to expedite approvals quickly, professionally, and orderly—in just weeks.
If, for any reason, you decide to raise your tariffs, any increase you make will be added to the 30% rate we impose. Please understand that these tariffs are necessary to correct years of unfair policies that have created an unsustainable trade deficit against the United States. This deficit poses a significant threat to our economy and, indeed, our national security!
We look forward to working with you as a trading partner for many years to come. If you are willing to open your currently closed markets to the United States and eliminate your tariffs, non-tariff policies, and trade barriers, we will consider—perhaps—amending this letter. These tariffs could be adjusted up or down, depending on our relationship with your country. You will never be disappointed with the United States of America!
Thank you for your interest in this matter!
With best wishes,
I remain, most sincerely,
Donald J. Trump,
President of the United States of America