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Traders protest against high customs tariffs in Baghdad

Feb 8, 2026, 12:41 PM20
(Update: Feb 8, 2026, 12:41 PM)
capital city of Iraq
sovereign state in western Asia

Traders protest against high customs tariffs in Baghdad

  • Hundreds of traders protested in Baghdad against new tariffs that have significantly increased their import costs.
  • The customs tariffs, effective from January 1, 2026, are part of government efforts to reduce debt and reliance on oil revenues.
  • The protests signify widespread discontent over the financial burden on citizens and potential corruption in the customs process.
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On February 7, 2026, protests erupted in central Baghdad, Iraq as hundreds of traders and customs clearance company owners voiced their concerns against newly imposed customs tariffs. These tariffs, enacted on January 1, 2026, are part of a governmental strategy aimed at reducing the nation's enormous debt, which amounts to over 90 trillion Iraqi dinars (approximately $69 billion), and lessening reliance on oil revenues amid falling oil prices. Traders have reported escalations in their import costs due to these tariffs, with some fees increasing as high as 30%. Protesters highlighted the significant economic strain being imposed, citing that previous charges of around 3 million dinars per container have surged to nearly 14 million dinars on some occasions. The increased tariffs have resulted in a backlog of goods at the Umm Qasr port, and numerous essential items, including infant milk, have seen overly inflated costs, leading to serious implications for consumers. The public outcry is further exacerbated by claims of corruption, with traders accusing influential groups of facilitating the release of goods for lower unofficial payments, thus compromising fair trade practices within Iraq. Many in the business community are exploring alternative routes for their imports, specifically considering the Kurdistan region, which reportedly has lower customs fees. These protests coincided with a broader nationwide strike, as small shop owners across various regions of Baghdad closed their businesses in solidarity against the tariff hikes. In response to the mounting frustrations, traders have indicated their intention to challenge the legality of these tariffs through a formal lawsuit set to be reviewed by Iraq's Federal Supreme Court on February 10, 2026. The demonstrators not only condemned the tariffs but also called out the systemic corruption within the customs process, stressing the adverse effects these financial burdens have on low-income citizens and government employees who are already struggling to make ends meet.

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