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Understand the complexities of international tariffs and ease of doing business across nations to cultivate balanced trade relationships, streamline operations, and deliver cost savings to end consumers.

Implications
The current trade relationship and status of US tariffs on Iraq are primarily defined by the general global tariff policies implemented by the US, rather than a specific bilateral trade dispute with Iraq.
Here is an update on US tariffs and the trade relationship with Iraq as of October 2025:
Area | Status (October 2025) | Key Details |
US Tariffs on Iraq | 30% (Implemented Reciprocal Tariff) | Iraq is subject to the new U.S. "Reciprocal Tariff" system, with a current rate of 30% on most non-oil goods. This is part of the broader tariff policy aimed at correcting trade deficits with various countries. |
Tariff on Oil (Iraq's main export) | Generally Exempt | Crude oil, which makes up the vast majority of Iraq's exports to the US, is generally exempt from the new reciprocal tariffs under a carve-out for energy resources. |
Trade Deals / Agreements | No Formal Tariff Agreement | Iraq has not reached a bilateral agreement with the US to reduce or cap its reciprocal tariff rate, unlike some other countries (e.g., the UK, Japan, and South Korea). |
Companies Impacted | US Exporters and Foreign-Sourced Consumer Goods | US companies that export goods to Iraq (machinery, consumer goods, agriculture) face a challenging environment due to Iraq's existing business issues, not directly from US tariffs. Iraqi imports of U.S. goods have historically been relatively small. |
Special Note: Sanctions | Ongoing Financial and Iran-Related Sanctions | US economic policy toward Iraq is still heavily influenced by targeted sanctions against individuals and entities linked to corruption, money laundering, and support for Iranian-backed groups. This is a greater hurdle for business than the new tariffs. |
Impact on Companies
The direct impact of the 30% US reciprocal tariff falls on the importers and final consumers of Iraqi non-oil goods in the US. However, this impact is minimal since Iraqi exports to the US are overwhelmingly oil, which is exempt.
The larger challenge for US companies operating in and exporting to Iraq comes from:
Iraq's Business Climate: US companies face perennial issues in Iraq, including corruption, contract disputes, high tax liabilities, and complex customs procedures.
Targeted Sanctions (OFAC): Companies are heavily impacted by U.S. Treasury (OFAC) sanctions, which target financial institutions and companies found to be facilitating corruption or assisting sanctioned Iranian entities. Companies must exercise extreme caution to avoid falling afoul of these financial restrictions.
Indirect Effects: The overall global trade uncertainty and the general rise in U.S. tariffs have been linked to a potential decline in global oil demand, which could indirectly affect the price and revenue of Iraq's main export.
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Tariff Rate for US
World Bank staff estimates using the World Integrated Trade Solution system, based on tariff data from the United Nations Conference on Trade and Development's Trade Analysis and Information System ( TRAINS ) database and global imports data from the United Nations Statistics Division's Comtrade database.
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United States Imports from Countries during 2024, according to the United Nations COMTRADE database on international trade. United States Imports from Countries- data, historical chart and statistics - was last updated on April of 2025.
Investing in USA
theboardiQ Economic Relevance Score, ranks States of USA based on 11 parameters
Sources : Forbes | USDA Economic Research | TCGen Total Innovation Rank Index | Best States for Manufacturing | World Population Review | Tax Foundation | US News | BEA Data | Wikipedia | International Trade Administration
theboardiQ's Economic Relevance Score provides a comprehensive, data-driven assessment of a nation's economic vitality and global significance. This score is meticulously calculated using 11 key parameters, each reflecting a critical facet of economic performance. It analyzes the representation of Fortune 500 companies within a nation, a strong indicator of its business environment and market size. The balance of trade surplus or deficit reveals the nation's international competitiveness and export strength. It incorporates Gross Domestic Product (GDP), a fundamental measure of overall economic output, and examine the health of key sectors like agriculture and manufacturing. The score also accounts for innovation, gauging a nation's ability to drive future growth through technological advancements. Crucial labor market indicators such as employment rates are considered, alongside fiscal policies reflected in tax rates. To capture the lived experience of citizens, it assesses cost of living and disposable income, providing insight into purchasing power and economic well-being. Finally, education levels are integrated, recognizing their pivotal role in fostering a skilled workforce and driving long-term economic development. By synthesizing these 11 parameters, theboardiQ's Economic Relevance Score delivers a nuanced and holistic view of a nation's economic standing, enabling informed strategic decisions. The Top 5 States in the assessment are Texas, North Carolina, Virginia, Florida and Washington. Texas does consistently well across most of the 11 variables especially in the areas of GDP, F500 representation in the State, Balance of Trade where it ranks 2nd nationally. North Carolina scores as the highest-ranking state nationally in manufacturing and performs consistently across the other variables. Virginia does well in disposable income where it ranks 3rd nationally. It also scores high in the variables of manufacturing and employment Florida holds the 4th ranking nationally for GDP and Tax Washington State scores the top spot for disposable income nationally, 2nd for education and 3rd for innovation. Colorado, with an overall rank of 7 scores the top spot for Education (schools and higher education). Nebraska, that ranked 10th overall, did well in Agriculture where it is ranked 3rd nationally as well as Trade Balance where it ranked 5th. Illinois, though ranked 20th overall did well nationally in F500 representation, GDP, Agriculture, and Disposable Income. Pennsylvania comes in at 21 overall doing well nationally in GDP (6th); Manufacturing (8th) and F500 representation (8th) New York scores 23rd overall with a 2 ranking in Disposable Income nationally, as well as 3rd in both F500 representation and GDP. California comes in at 29th overall and has the top spot ranking in a whopping 4 variables nationally – GDP, Innovation, Agriculture and F500 representation. However, performance in the areas of Trade Balance, Cost of Living, Tax, Manufacturing and Employment resulted in the overall ranking dipping. Wyoming at 30th overall scores the top spot nationally in the area of Tax Massachusetts at 31 overall does well in innovation where it is ranked 2nd nationally Arkansas at 36 and Alabama at 39, do well in overall Cost of Living where they are ranked 2nd and 3rd nationally, respectively. Louisiana ranked 44th overall is ranked 1st in Trade Balance nationally.

Economic
Relevance
Ranking
State | Info | Overall Rank | Agri | Innov | Mfg | Employ | Tax | Edu | GDP | F500 Rep | Trade Balance | Cost of Living | Disp Income |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Texas | 1 | 4 | 5 | 11 | 10 | 7 | 42 | 2 | 2 | 2 | 24 | 13 | |
North Carolina | 2 | 9 | 21 | 1 | 4 | 12 | 28 | 11 | 16 | 41 | 17 | 17 | |
Virginia | 3 | 32 | 24 | 6 | 2 | 28 | 7 | 13 | 6 | 34 | 35 | 3 | |
Florida | 4 | 21 | 11 | 15 | 1 | 4 | 35 | 4 | 7 | 40 | 30 | 37 | |
Washington | 5 | 16 | 3 | 36 | 28 | 45 | 9 | 9 | 15 | 9 | 43 | 1 | |
Missouri | 6 | 11 | 25 | 22 | 20 | 13 | 32 | 21 | 22 | 20 | 10 | 20 | |
Georgia | 7 | 15 | 26 | 9 | 3 | 26 | 34 | 8 | 9 | 43 | 26 | 19 | |
Minnesota | 8 | 6 | 10 | 47 | 6 | 44 | 8 | 20 | 10 | 33 | 33 | 9 | |
Ohio | 9 | 12 | 32 | 7 | 30 | 35 | 36 | 7 | 5 | 38 | 15 | 11 | |
Illinois | 10 | 5 | 23 | 31 | 23 | 37 | 16 | 5 | 4 | 47 | 32 | 7 |