Iraqi traders staged major protests in Baghdad Sunday against newly imposed customs tariffs that took effect January 1. The demonstration outside the General Customs Directorate saw hundreds of customs clearance company owners and merchants demanding the government reverse the fees, which they say have sharply increased costs and disrupted trade.

Iraq implemented the tariffs as part of efforts to reduce its massive debt burden and decrease reliance on oil revenues. The country faces over 90 trillion Iraqi dinars ($69 billion) in debt, with the state budget still dependent on oil for approximately 90% of revenues despite diversification attempts. The new tariffs reach as high as 30% in some cases.

Traders report dramatic cost increases, with container fees rising from 3 million to 14 million dinars in certain instances. Infant milk fees jumped from about 495,000 to nearly 3 million dinars. The tariffs have caused significant backlogs at Umm Qasr port and now apply to electric vehicles previously exempt from duties. Protesters accuse influential groups of facilitating goods releases through unofficial payments.

The demonstrations coincided with a nationwide strike by shop owners who closed markets across Baghdad. Major commercial districts saw shuttered stores displaying banners reading "Customs fees are killing citizens." Many traders are now considering routing imports through the Kurdistan region where fees remain lower. The Federal Supreme Court is scheduled to rule Wednesday on a lawsuit filed to reduce the tariff decision.