🇮🇶 Iraq vs 🇲🇽 Mexico Tariffs — Import Duty Comparison (2026)

🇮🇶

Iraq

Section 122 Rate10%

Section 301N/A

Section 232 (Metals)50%

Trade AgreementNone

Trade Volume$12B

Base Effective Rate10%

🇲🇽

Mexico

Section 122 Rate10%

Section 301N/A

Section 232 (Metals)50%

Trade AgreementUSMCA

Trade Volume$779B

Base Effective Rate10%

Product Overlap

Both countries export these product categories to the US:

Crude oil

🇮🇶 Iraq Advantages

+Unique export categories: Petroleum products, Dates, Chemicals

🇲🇽 Mexico Advantages

+Trade agreement: USMCA (duty-free on qualifying goods)
+Higher US trade volume ($779B vs $12B)
+Unique export categories: Motor vehicles, Auto parts, Computers

Iraq and Mexico are both significant US trading partners, but their tariff profiles differ in important ways that affect import costs.

Both countries face the same base tariff rate of 10% on most goods entering the United States.

Both countries export Crude oil to the United States, creating direct competition in these sectors.

In terms of trade volume, Iraq accounts for approximately $12B in bilateral trade with the US, compared to Mexico's $779B.

Both countries are subject to the 10% Section 122 tariff imposed on February 24, 2026, following the Supreme Court's ruling striking down IEEPA tariffs. This rate expires approximately July 24, 2026 unless Congress extends it.

Iraq's advantages include: Unique export categories: Petroleum products, Dates, Chemicals. Mexico's advantages include: Trade agreement: USMCA (duty-free on qualifying goods); Higher US trade volume ($779B vs $12B); Unique export categories: Motor vehicles, Auto parts, Computers.

With equivalent base tariff rates, the choice between Iraq and Mexico depends primarily on product-specific duties, shipping costs, lead times, and supply chain considerations rather than the base tariff rate.

Frequently Asked Questions

Which has lower tariffs — Iraq or Mexico?

Both countries face the same base Section 122 tariff of 10%. The difference comes from product-specific duties, Section 301 (China only), and Section 232 (metals).

Should I switch sourcing from Iraq to Mexico?

The decision depends on more than tariff rates. Consider total landed cost (shipping, insurance, customs fees), lead times, quality standards, minimum order quantities, and supply chain reliability. With equivalent base rates, focus on non-tariff factors.

Do both Iraq and Mexico face the same Section 122 tariff?

Yes, both countries are subject to the 10% Section 122 tariff imposed on February 24, 2026. This flat rate replaced the variable IEEPA tariffs struck down by the Supreme Court. It expires approximately July 24, 2026.

What products overlap between Iraq and Mexico exports to the US?

Both countries export Crude oil to the US. Iraq has total bilateral trade of ~$12B while Mexico has ~$779B.