TRUMP AND SUDANI DEVELOPMENTS: A MESSAGE AND SEVERE REBUKE EXPLAINING THE 30% TAX

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

MNT GOAT: This reinstatement of the dinar is nothing but political!!

 Mnt Goat 

 ...I have said it many times that this reinstatement of the dinar is nothing but political...If it wasn’t, the Dr Shabibi coup would have never happened.

 The newer lower denominations would be in circulation and we would have already been to the bank...if we truly want the TRUTH we must connect the pieces and see it.

 Trump’s policy towards Iraq is one of hope but he is also going to first use Iraq as a platform for peace in the middle east. 

...When the U.S. really steps up to the plate economically in Iraq you will see wonderous things happen...

Mayhem w/ Mel 🔹: Global Updates on QFS and Redemption Outside the U.S. #iqd #iraq

 

INTERNATIONAL WARNING TO IRAQ.. AN EXPERT DISCUSSES THE IMF REPORT: YOU ARE TO BLAME, TOO

INTERNATIONAL WARNING TO IRAQ.. AN EXPERT DISCUSSES THE IMF REPORT: YOU ARE TO BLAME, TOO.

Economic expert Suham Yousef discusses the latest report by the International Monetary Fund (IMF), which included significant warnings to the Iraqi government regarding the continued decline in revenues while increasing public spending, which constitutes a serious structural deficit in the economy’s structure.

The expert’s criticism of the IMF itself stems from the fact that the IMF itself is unaware of the Iraqi political and social context, which makes implementing the “ready-made recipes” it offers extremely difficult.

Its proposals clash with the spread of the deep state’s influence and its obstruction of tax reform aimed at increasing non-oil revenues, for example.

The proposal to rationalize spending also clashes with the fragile social reality and the dependence of millions of Iraqis on government salaries amid a weak private sector and the expansion of the “parallel economy.”  This situation places Iraq facing an imbalance with every barrel of oil sold, the continued depletion of financial reserves, the rise of public debt to 62%, and the decline of foreign investment to 0% of GDP.

In its latest report, the International Monetary Fund (IMF) issued a stark warning about worsening financial and economic vulnerabilities, warning that the country is heading toward a widening budget deficit amid declining oil prices, weak non-oil revenues, and ballooning current expenditures, particularly for wages and pensions.

The report presents an accurate but worrying picture of the Iraqi economy and raises fundamental questions about the government’s preparedness to contain the coming crisis.

Despite the government’s attempts to present plans to diversify the economy, the reality tells a different story. Non-oil growth slowed sharply to just 1% in 2024, according to IMF estimates, compared to 13.8% the previous year. This decline reveals that non-oil sectors remain limited in their impact and suffer from weak infrastructure, a lack of real incentives, and an unattractive investment environment.

MZ Update: Iraq Cleans Up, Banks Prepare – RV Still Brewing"

 EXCERPTS FROM MARKZ

MZ: My redemption center/wealth management folks are not working this weekend…nor are they on call. So for me I am not looking for an RV this weekend…but these folks have been working hard the last few weeks. I even have a Chase contact who said they have lifted restrictions on amounts of foreign currency in preparation …I loved hearing that one.

MZ: In Iraq: “ Among them are forgery, currency smuggling, and real estate usurpation. (CONSIOUS)opens 15 files with the Public Prosecution” They are going after old crimes from Sadaam Hussein and the Bush camp that was stealing from Iraq for years.  They are cleaning up old files. 

MZ: These are things that needed settled before they revalue. I love they are cleaning things up.

Iraq’s Latest Actions to Support the Dinar’s Value #iqd #iraqidinar

 

IMF EXECUTIVE BOARD CONCLUDES 2025 ARTICLE IV CONSULTATION WITH IRAQ

 IMF EXECUTIVE BOARD CONCLUDES 2025 ARTICLE IV CONSULTATION WITH IRAQ

Washington, DC: The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Iraq and considered and endorsed the staff appraisal without a meeting on a lapse-of-time basis.

• Iraq has managed to uphold domestic stability despite regional turmoil and global uncertainty. At the same time, the non-oil economy slowed down in 2024 following a very strong growth in 2023. Inflation has remained subdued amid weaker demand. Financing constraints and lower oil revenues are expected to constrain fiscal spending, taking an additional toll on economic activity.

• Against a baseline of low oil prices, fiscal deficits and external accounts are projected to deteriorate further over the medium term unless significant reforms are undertaken to increase non-oil revenues, control the public wage bill, and boost non-oil growth potential through an ambitious structural reform agenda.

(This is why the budget tables for 2025 have not yet been released. The GOI does not want to complete the projects allocated for 2025 due to a drop in oil revenues.)