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Iraq

US Revised Tariffs (%)

35

Ease of doing business

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Revised Tariff %
Original Tariff %
Country Tariff Rate %
Share of US Imports % (1 implies <1%)
35
39
0
1
Exports (in USD Bill.) 2024
Imports (in USD Bill.) 2024
Balance (in USD Bill.) 2024
1.66
7.42
-5.76

Implications

As of January 2026, the trade landscape between the US and Iraq has shifted significantly under the new US administration's "Maximum Pressure 2.0" and global tariff policies. The focus has moved from standard trade to punitive measures targeting Iraq’s energy and financial ties with Iran.


Latest US Tariffs & Sanctions Update: Iraq


The US has implemented a multi-layered tariff and sanction strategy as of January 2026:

  • 25% "Secondary" Tariffs: In late January 2026, the US announced a 25% tariff on goods from countries maintaining "significant trade" with Iran, specifically targeting Iraq, the UAE, and Turkey.

  • Oil Sanctions Warnings: The US Treasury recently issued formal warnings to Iraq regarding its "shadow fleet" activities and oil trade that bypasses US-led sanctions on Iran.

  • Reciprocal Tariff Risk: While Iraqi oil exports have historically been exempt from standard US reciprocal tariffs, the administration is currently calculating a potential 39% "Reciprocal Tax" on non-oil Iraqi goods to match the perceived trade barriers Iraq imposes on US exports.


Major Companies & Sectors Impacted

The impact is felt most heavily in the energy and banking sectors rather than retail, given the nature of Iraq's export economy.

Sector

Impacted Entities / Companies

Nature of Impact

Energy

SOMO (State Organization for Marketing of Oil)

Faces increased scrutiny and potential freezing of US-based dollar accounts.

Oil Services

Halliburton, Baker Hughes

Operational risks due to potential regional instability and compliance hurdles.

Banking

Central Bank of Iraq (CBI)

Under intense pressure to digitize and cut ties with Iranian financial networks to maintain access to the Fed’s dollar auctions.

Consumer Goods

Toyota, Ford (Exporters to Iraq)

Higher costs for Iraqi consumers as US-made vehicles face retaliatory "deal" pressures or logistics hikes.

GDP & Balance of Trade (YTD 2026)


Iraq’s economy remains a "monoculture" heavily reliant on crude oil, which makes it vulnerable to trade-related volatility.


  • GDP Impact: Iraq's GDP growth is projected at 3.5% for 2026. However, the new US tariffs and potential oil sanctions are estimated to create a 0.5% to 1.0% drag on this growth if energy exports are disrupted.

  • Balance of Trade (BOT) YTD: Iraq continues to run a Trade Surplus, though it is narrowing.

    • YTD 2026 Surplus (Est): ~$4.5 Billion (Driven by oil prices hovering around $70-$75/bbl).

    • Main Exports: Crude Oil (99%), refined petroleum.

    • Main Imports: Refined fuels (ironically), food, cars, and machinery.


SWOT Analysis: Iraq 2026


Below is a strategic overview of Iraq's current economic standing in the face of these trade shifts.

Strengths

Weaknesses

* Energy Reserves: Massive oil and gas reserves provide a constant revenue floor.

* Oil Dependency: 90%+ of government revenue is tied to a single, volatile commodity.

* Strategic Location: Central logistics hub potential for Middle East-Europe trade.

* Financial Fragility: Heavy reliance on the "Dollar Auction" and US Federal Reserve approval.

* Reconstruction Momentum: High demand for infrastructure and housing projects.

* Bureaucracy: Deep-seated corruption and administrative delays for foreign firms.

Opportunities

Threats

* Gas Capture: Developing domestic gas to end dependence on Iranian imports.

* US Sanctions: Direct "Secondary Sanctions" could paralyze the banking sector.

* Solar Energy: Massive potential for renewable energy to solve power shortages.

* Regional Escalation: Proximity to Iran-Israel tensions poses a risk to shipping.

* Digital Reform: CBI's push for electronic payments could modernize the economy.

* Water Scarcity: Declining levels in Tigris/Euphrates threaten agricultural stability.


US Revised Tariffs

Country Tariffs

Balance of Trade

Commercial Guide

Learn about the market conditions, opportunities, regulations, and business conditions in countries, prepared by U.S. Embassies worldwide, Commerce Department, State Department and other U.S. agencies’ professionals

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.

US Imports Guide 

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 : ForbesUSDA 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.

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