ERBIL, Kurdistan Region - Baghdad’s main commercial districts were largely shut down on Sunday as wholesale traders went on strike to protest newly imposed government customs tariffs on imported goods, warning the measures would sharply drive up prices for consumers.
The new tariffs range from 5 percent to 30 percent and took effect on January 1.
“It isn’t just clothing; it’s electronics and food-everything has surged. Today, a pack of cigarettes was 750 [dinars] (around $0.57); within a single hour, it jumped by another 500 (around $0.38). Where are we supposed to turn? Back to the customer. My dear Al-Sudani, this isn't working, sir,” trader Haidar Kadhim told Rudaw.
Dozens of traders gathered outside the customs department in the capital, calling for the immediate repeal of the tariff policy.
“I’ll say it again: an employee's salary won’t even last 15 days anymore. Why? Because I have to add 30 percent to the cost of goods. If I receive a shipment today and pay 30 percent in tariffs, I’m going to pass that entire 30 percent onto the price of the merchandise. And who is going to pay that extra 30 percent? The citizen,” said merchant Ahmed Jabbar.
Haidar Abdulkareem, a clothing merchant, said the increase has made imports financially unviable.
“As a clothing merchant, we used to clear a shipping container for 3,000,000 [dinars] (around $2,290.00), maybe reaching 3,500,000 (around $2,671.00). Now, they are demanding 37,000,000 (around $28,244.00). Logic and reason cannot accept this - 37 million! An item that used to be sold for 5,000 (around $3.82) will now have to be sold for 40,000 (around $30.53),” he said.
The government has defended the new tariffs as part of broader efforts to reduce public debt and curb reliance on oil revenues amid falling global oil prices.
Officials have also said the measures aim to combat corruption and strengthen Iraq’s economy, though merchants warn the policy risks accelerating inflation and deepening pressure on household incomes.
Aqeel Jassim Al-Tai, a consultant at the Baghdad Chamber of Commerce, said in a video message on Facebook that markets are facing “a real challenge” due to the rise in the exchange rate and what he described as “rapid decisions” that have directly affected trade. He said markets and ports are crowded, imports are delayed, and demand is rising among both traders and consumers.
While stressing that merchants do not oppose regulating trade or supporting domestic products, Al-Tai called for a “realistic and studied application” of policies to ensure price stability and smooth trade flows. He urged authorities to use the next three months “to correct mistakes”, ease procedures, and introduce practical solutions to reduce market costs, saying the ultimate goal is “a stable market.”
Halkawt Azeez from Baghdad and Rekar Aziz from Erbil contributed to this report.