Iraq was among the countries that received a letter from US President Donald Trump on July 9th advising its prime minister that Baghdad’s trading relationship with Washington was far from reciprocal—and thus its exports to the United States would be subject to a 30 percent tariff starting August 1.

This is lower than the initial rate of 39 percent that the Trump administration announced on “Liberation Day” back in April, but higher than the revised 10 percent base rate that applied to all countries when the Trump administration paused “Liberation Day” tariffs for ninety days, allowing room for negotiations that expired in July.

But the US trade deficit with Iraq is primarily a function of Iraqi oil exports, which are exempt from reciprocal tariffs. Thus, the first 39 percent rate

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