Iraqi Trade Minister: Markets stable despite tariff protests

Shafaq News- Baghdad

Iraq’s Trade Minister Atheer Dawood Al-Ghariri on Sunday rejected calls to cancel customs tariffs as a way to curb prices, arguing that the recent measures aim to strengthen border controls, protect the national economy, and limit smuggling.

At a press conference in Baghdad’s Al-Amil neighborhood, Al-Ghariri described the latest tariff adjustment as “symbolic,” capped at 5%, and aligned with legal frameworks applied in neighboring countries, adding that it does not lead to higher consumer prices. He pointed to stable prices in local markets and the continued availability of food and consumer goods at subsidized rates at least 20% below prevailing market levels.

Dismissing reports of sharp price increases, Al-Ghariri confirmed, “All Cooperative Hypermarket outlets have been instructed to keep prices unchanged,” warning that violations will be penalized. He also called on citizens and traders to disregard what he characterized as misleading rumors, noting that authorities are monitoring markets, maintaining supply flows, and continuing state support to protect consumers and compliant traders.

Protests and market shutdowns began in Baghdad and spread to several central and southern provinces, with traders opposing new tariff rates they say have raised import costs, disrupted supply chains, and driven up consumer prices. The increases were introduced under Cabinet Decision No. 957 of 2025 as part of government efforts to “boost non-oil revenues.”

Iraq’s Federal Supreme Court has set February 11 to rule on a legal challenge against the tariff hike, lawmaker Mohammed Al-Khafaji said earlier today in a video recorded outside the court building.

Read more: Explainer: Iraq’s updated customs tariffs, legal dispute, and market impact