Despite Public Anger, No Progress in Iraq Political Deadlock

A protester holds a poster depicting Shiite cleric Moqtada al-Sadr on a bridge leading towards the Green Zone area in Baghdad, Iraq, Saturday, July 30, 2022. (AP)
A protester holds a poster depicting Shiite cleric Moqtada al-Sadr on a bridge leading towards the Green Zone area in Baghdad, Iraq, Saturday, July 30, 2022. (AP)
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Despite Public Anger, No Progress in Iraq Political Deadlock

A protester holds a poster depicting Shiite cleric Moqtada al-Sadr on a bridge leading towards the Green Zone area in Baghdad, Iraq, Saturday, July 30, 2022. (AP)
A protester holds a poster depicting Shiite cleric Moqtada al-Sadr on a bridge leading towards the Green Zone area in Baghdad, Iraq, Saturday, July 30, 2022. (AP)

Weeks after followers of influential cleric Moqtada al-Sadr stormed parliament, Iraq’s political crisis shows no signs of abating, despite rising public anger over a debilitating gridlock that has further weakened the country's caretaker government and its ability to provide basic services.

Iraq's two rival Shiite political camps remain locked in a zero-sum competition, and the lone voice potentially able to end the rift — the revered Grand Ayatollah Ali al-Sistani — has been conspicuously silent.

For now, hundreds of supporters of Sadr, a firebrand Shiite cleric, are still camped outside the legislative building in Baghdad, ready to escalate if their demands are not met.

Sadr has called for early elections, the dissolution of parliament and constitutional amendments. He has given the judiciary an end-of-the-week deadline to dissolve the legislature.

His Shiite rivals in the Iran-backed Coordination Framework have conditions of their own. They accused him of violating the constitution, prompting counter-protests that have spurred fears of bloodshed.

Neither faction seems willing to compromise to end the 10-month-old political crisis, the longest since the 2003 US invasion reset the political order. The caretaker Cabinet — unable to pass laws or issue a budget — grows more feeble by the day, while the public lashes out in protest against poor services, including power cuts during the scorching summer heat.

Uniting the warring factions

When Sadr commanded thousands of followers to storm Baghdad’s heavily fortified government zone on July 30, he paralyzed state institutions and prevented his political rivals from proceeding with the formation of a government.

Sadr might have felt emboldened by the silence of the 92-year-old al-Sistani, a revered spiritual figure whose word holds enormous sway among leaders and ordinary Iraqis.

Three officials at al-Sistani's seminary in the city of Najaf said he has not used his influence because he did not want to appear to take sides in the most acute internal Shiite crisis since 2003. They spoke on condition of anonymity because they were not authorized to brief the media.

"The Marjaiya is watching the situation with concern," said one of the officials, referring to al-Sistani. He said he "will not interfere at the present time. His entry may be perceived as benefiting one party over another."

Al-Sistani has seldom intervened in political matters, but when he has, it has altered the course of Iraqi politics.

In 2019, his sermon led to the resignation of then-Prime Minister Adil Abdul Mahdi amid mass anti-government protests, the largest in Iraq’s modern history. Mustafa al-Kadhimi’s administration was sworn in with the goal of holding early elections, which took place in October.

Al-Sistani has grown weary of current Iraqi political dynamics, the official in Najaf said. He has not resumed his usual Friday sermons, which were suspended during the pandemic. His doors remain closed to Iraq’s political elites, a sign that he disapproves of them.

The seminary in Najaf is also divided over Sadr. Some fear his audacity is deepening the Shiite divide, while others agree with his anti-corruption and reformist rhetoric. Dozens of students from the seminary recently joined the protests.

Al-Sistani does have red lines that, if crossed, would compel him to intervene, the officials said. They include bloodshed and attempts to erode what are seen as Iraq's democratic foundations.

"Moqtada knows these red lines and will not cross them," one official said, according to The Associated Press.

Searching for a way out of the crisis

Even if the Shiite rivals were to agree to hold elections, fundamental differences remain about electoral rules. There's no legal precedent to guide decision-makers.

Sadr has hinted he will escalate protests if the judiciary does not dissolve parliament by the end of the week. The judiciary says it does not have the power to disband the legislature.

His rivals in the Framework, made up of largely Iran-backed Shiite parties, claim Sadr's pressure on the judiciary is unconstitutional. They don’t object to new elections, provided there is a national consensus on how the vote will be conducted.

Such a consensus seems unattainable.

Sadr wants to use the same rules as in the October election, when Iraq was divided into 83 electoral districts. The current law benefits parties with a strong grassroots base like Sadr’s, who grew his seat tally from 54 to 73, while the Iran-backed parties saw a crushing decrease from 48 to 16.

The Framework wants the law to be amended. However, the parliament building is closed, with hundreds of Sadr’s followers camped outside preventing MPs from entering.

What the rest of Iraq thinks

Ordinary Iraqis are increasingly frustrated because the caretaker government is struggling to provide basic services, such as electricity and water.

The political crisis comes at a time of growing unemployment, particularly among young Iraqis. The country has endured consecutive droughts that severely damage agriculture and fisheries industries, further diminishing prospects for jobs.

Protests in southern Iraq turned violent last week after stone-throwing demonstrators clashed with security forces outside oil fields in the provinces of Missan and Dhi Qar. More than a dozen protesters were detained, and more than a dozen members of the security forces were injured.

In Missan, Mustafa Hashem protested against severe water shortages that damaged livelihoods in Iraq's marshes. He said the security forces engaged in "brutal and unjustified repression" against peaceful protesters.

More protests were held in the southern province of Basra after three straight days of power cuts during the peak summer heat. Protests are common during the summer in Iraq, when rising temperatures overwhelm the national grid, causing outages. This year, many demonstrators called for Sadr to champion their rights.

Salinity levels in Basra this summer are nearly the same as four years ago when tens of thousands of people were hospitalized because of poor water quality, said environmentalist Shukri al-Hassan. The 2018 health crisis spurred violent protests that served as the harbinger for mass anti-government rallies the following year.

Unable to pass a budget law, the caretaker government has resorted to stop-gap measures to fund urgent expenses such as food and electricity payments to neighboring countries. Meanwhile, crucial investments, including in water infrastructure, have been stalled.



Where Things Stand in the US-China Trade War

OAKLAND, CALIFORNIA - APRIL 09: The container ship CMA CGM Osiris arrives at the Port of Oakland on April 09, 2025 in Oakland, California.  Justin Sullivan/Getty Images/AFP
OAKLAND, CALIFORNIA - APRIL 09: The container ship CMA CGM Osiris arrives at the Port of Oakland on April 09, 2025 in Oakland, California. Justin Sullivan/Getty Images/AFP
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Where Things Stand in the US-China Trade War

OAKLAND, CALIFORNIA - APRIL 09: The container ship CMA CGM Osiris arrives at the Port of Oakland on April 09, 2025 in Oakland, California.  Justin Sullivan/Getty Images/AFP
OAKLAND, CALIFORNIA - APRIL 09: The container ship CMA CGM Osiris arrives at the Port of Oakland on April 09, 2025 in Oakland, California. Justin Sullivan/Getty Images/AFP

US President Donald Trump has ramped up his trade war against China, further raising import tariffs on Beijing to 125 percent despite pausing them for other countries.

The move came hours after China announced reciprocal action against the United States in response to a previous levy hike.

AFP looks at how the escalating trade war between the world's two biggest economies is playing out -- and what impact it might have:

What actions has Trump taken so far?

Trump said Wednesday that the US would raise tariffs on Chinese imports to a staggering 125 percent, citing a "lack of respect" from Beijing.

The announcement came as the mercurial president announced a halt on tariffs for other nations for 90 days, following panic on global markets.

The new levy on China marked the latest salvo in a brewing tit-for-tat trade war between the two global superpowers.

A previous round of US tariffs had come into force earlier on Wednesday, jacking up duties on China to 104 percent.

As well as the blanket levies, China is also under sector-specific tariffs on steel, aluminium and car imports.

How has China responded?

China has vowed to fight the measures "to the end" and so far has unveiled reciprocal tariffs each time Trump has upped the ante.

Responding to the 104 percent duties on Wednesday, Beijing said it would raise its own tariffs on US imports from 34 percent to 84 percent, effective from Thursday.

It also said it had filed a complaint with the World Trade Organization (WTO), citing "bullying" tactics by the Trump administration.

China had not responded to the latest hike in tariffs to 125 percent levies as of Thursday morning.

But its countermeasures have begun to step outside the economic sphere, with government departments warning citizens of the "risks" of travelling to the US or studying in parts of the country.

And while Beijing has blasted the US with fiery rhetoric, it has continued to urge "equal dialogue" to resolve the trade spat.

Zhiwei Zhang, chief economist at Pinpoint Asset Management, said China had sent a "clear signal" that it would not back down, adding that there was "(no) quick and easy way out" of the conflict.

Haibin Zhu, chief China economist at J.P. Morgan, agreed, saying "the bar for a possible deal is high".

- Why is China so vulnerable to tariffs? -

Trade between the world's two largest economies is vast.

Sales of Chinese goods to the US last year totaled more than $500 billion -- 16.4 percent of the country's exports, according to Beijing's customs data.

And China imported $143.5 billion in goods from the United States in 2024, according to the office of the US Trade Representative.

That trade was dominated by agricultural products, primarily oilseeds and grains, according to the US-China Business Council. Oil and gas, pharmaceuticals and semiconductors are also among major US exports to China.

Beijing has long drawn Trump's ire with a trade surplus with the United States that reached $295.4 billion last year, according to the US Commerce Department's Bureau of Economic Analysis.

Chinese leaders have been reluctant to disrupt the status quo, in part because the country's export-driven economy is particularly sensitive to vicissitudes in international trade.

US duties also threaten to harm China's fragile post-Covid economic recovery as it struggles with a debt crisis in the property sector and persistently low consumption -- a downturn Beijing had sought to slow with broad fiscal stimulus last year.

But an intensified trade war will likely mean China cannot peg its hopes for strong economic growth this year on its exports, which reached record highs in 2024.

What impact will US tariffs have?

The head of the WTO said Wednesday that the US-China tariff war could cut trade in goods between the two countries by 80 percent.

Given the two economic giants account for three percent of world trade, the conflict could "severely damage the global economic outlook", Ngozi Okonjo-Iweala said.

Analysts expect the levies to take a significant chunk out of China's GDP, which Beijing's leadership hope will grow five percent this year.

Likely to be hit hardest are China's top exports to the United States -- everything from electronics and machinery to textiles and clothing, according to the Peterson Institute of International Economics.

And because of the crucial role Chinese goods play in supplying US firms, the tariffs may also hurt American manufacturers and consumers, analysts have warned.

Paul Ashworth, chief North America economist at Capital Economics, said it was "difficult to see either side backing down in the next few days".

But, he added, "talks will eventually happen, although a full rollback of all the additional tariffs... appear unlikely".