The recent decision by U.S. President Donald Trump to impose a 39% tariff on Iraqi imports has significantly impacted the operations at the Harir factory, which primarily exports products like tomato sauce and pizza sauce to the U.S. market. Announced on April 2, 2025, this tariff is part of a broader series of trade measures, and it has made it more challenging for the factory to maintain its competitiveness in the U.S. market. The factory had also been relying on other domestic products, including potatoes, tomatoes, rice, and sawar, for export before the tariff was enacted.
Shwan Hamid, the director of the Harir Tomato Paste factory, expressed concerns about the potential damage this decision could cause. He stated that the new tariff will severely hinder the factory’s ability to export products to the United States, as the higher costs make Iraqi goods less competitive compared to those from other countries. Hamid also urged for special trade facilitation from the U.S. Consulate and the Foreign Relations Office, especially given the historical economic challenges Iraq has faced. He highlighted that Iraq’s trade balance traditionally favors imports over exports, meaning the tariff is likely to have significant negative effects on the country’s economy.