Iraq's oil exports to the United States will not be affected by the newly announced 30% US tariff introduced by President Donald Trump to address the trade deficit with Iraq, the Ministry of Trade confirmed.

Trade Ministry spokesperson Mohammed Hanoun said oil exports are exempt from the new duties, meaning the majority of Iraq's exports to the US remain unaffected, Iraqi News Agency reported on July 13.

Iraq's economy relies on oil exports for approximately 90% of government revenues, making the tariff exemption crucial for maintaining fiscal stability.

Hanoun said non-oil exports from Iraq to the US are currently minimal, with any impact from the tariffs being indirect mainly through potential downward pressure on global oil prices, which could affect government revenues.

The tariff exemption for oil exports represents significant relief for Iraq, which relies heavily on petroleum revenues to fund government operations and public services.

Iraq is one of the world's largest oil producers and exports constitute the vast majority of the country's trade relationship with the United States.

The Trump administration's decision to exempt oil from the tariff regime reflects the strategic importance of energy supplies in US-Iraq relations whilst addressing broader trade deficit concerns through other measures.

Non-oil trade between Iraq and the US remains relatively limited compared to the substantial petroleum export volumes that form the backbone of bilateral economic relations.

The clarification provides certainty for Iraqi oil sector planning and government budget projections, which depend heavily on petroleum export revenues for financing reconstruction and development programmes.