Economic expert Abdul Rahman Al-Mashhadani stated on Thursday that both Iraq and the United States will face negative consequences from the tariffs imposed by Donald Trump.
, Al-Mashhadani explained, "The tariffs imposed by Trump on countries worldwide are likely to lead to a global economic recession, reducing global demand for oil and consequently lowering its prices. This will harm Iraq, as oil revenues constitute 95% of its general budget."
He added, "The current rise in oil prices is due to threats of a potential strike on Iran and the outbreak of war in the region."
Al-Mashhadani noted that "Iraq exports only oil to the U.S., with export volumes ranging between 250,000 and 450,000 barrels per day." He clarified that "imposing tariffs on Iraqi oil means higher prices for petroleum products in the U.S. market, and demand for Iraqi oil may decrease if the U.S. obtains it at preferential prices from other countries."
The purpose of the tariffs, he pointed out, is to raise the prices of imported goods in the domestic market to enhance the competitiveness of national industries while also serving as a source of government funding.
Trump imposed tariffs on various types of goods imported by the U.S. from most countries worldwide, including Iraq, with rates ranging from 10% to 48%. In response, other countries-imposed tariffs on American exports to them.