Iraq Economic News and Points To Ponder Saturday Afternoon 2-21-26
Coordination Framework To Decide On Nouri Al-Maliki’s Premiership Nomination
2026-02-21 / 09:54 Shafaq News- Baghdad Iraq’s Coordination Framework is preparing to hold an expanded meeting to resolve the ongoing political deadlock by deciding whether to maintain or withdraw Nouri al-Maliki’s nomination for prime minister, informed sources told Shafaq News on Saturday.
The Coordination Framework, an alliance of Shiite political forces, is seeking to reach a unified position on its candidate for the premiership amid divisions within the bloc, the sources said, revealing that discussions in the next meeting will focus on selecting a figure suited to the country’s current economic and security challenges. The alliance is also expected to coordinate on setting a date for a parliamentary session to elect a new president, who would then formally task the Framework, as the largest parliamentary bloc, to nominate the next prime minister.
Read more: EXCLUSIVE: Al-Maliki holds to Iraq's premiership bid as CF weighs alternative
The meeting will address whether to keep the nomination of State of Law Coalition leader Nouri al-Maliki, whether he would withdraw personally, or whether the alliance would officially revoke his candidacy and search for an alternative.
The Framework has been divided over al-Maliki’s bid to return to office, with the head of the Al-Hikma Movement, Ammar al-Hakim, and Asaib Ahl al-Haq leader Qais al-Khazali expressing reservations about his candidacy. International reactions, including warnings from the United States over the potential implications of his selection, have also raised concerns among some Sunni factions.
Al-Maliki, who served as prime minister for eight years between 2006 and 2014, has repeatedly said he remains committed to his candidacy, adding that any reversal must come through a formal decision by the Coordination Framework.
Read more: Nouri Al-Maliki’s new doctrine for power: Pragmatism over defiance?
Iraq Bloc May Drop Maliki From PM Nomination After US Threats
MENA The New Arab Staff 21 February, 2026 Iraq’s ruling bloc has moved to drop Nouri al-Maliki as PM candidate after US warns of sanctions and possible review of ties.
Iraq’s ruling Coordination Framework coalition is moving towards abandoning Nouri al-Maliki’s bid for prime minister following US pressure and internal divisions, according to senior political sources.
The shift comes after what Iraq’s Foreign Ministry described on Thursday as "verbal" US messages rejecting Maliki’s nomination and warning of possible sanctions targeting Iraqi individuals and institutions, as well as a potential reassessment of relations with Baghdad.
The ministry issued the statement to clarify remarks made by Foreign Minister Fuad Hussein to a local television channel.
Senior sources within the Coordination Framework told The New Arab's sister outlet Al-Araby Al-Jadeed that "movement has already begun over the past two days to abandon Maliki by reconsidering the decision and creating new conditions to discuss the post".
The sources said Maliki had indicated he would only withdraw if two-thirds of the alliance agreed to remove him, stating that "Maliki has confirmed he is prepared to step aside if two-thirds of the Framework alliance agree to remove him".
The nomination, approved by an internal majority vote within the pro-Iran alliance, has caused divisions among its leadership. Parties within the bloc are now seeking what sources described as a new formula to reverse the decision.
Political sources from the alliance told Al-Araby Al-Jadeed that "the number of political forces rejecting Maliki has increased over the past two days, with some rallying around the issue of Iraq’s supreme national interest following the US threats".
They added that "leaders of the Coordination Framework are seriously considering removing Maliki from the race for prime minister, but in a polite manner that does not anger the Islamic Dawa Party or push it to withdraw from political life or refuse to participate in the next government".
According to the same sources, a shortlist of four alternative names is under discussion. Among them is National Intelligence Service chief Hamid al-Shatri, described as the frontrunner due to his relations across the political spectrum and cooperation with international intelligence agencies, "especially the United States".
The sources also said current Prime Minister Mohammed Shia al-Sudani is seeking another term, but that most forces do not support him. Basra Governor Asaad al-Eidani is also reportedly being considered.
They indicated that Ammar al-Hakim, Qais al-Khazali, Haider al-Abadi, and increasingly Hadi al-Amiri, along with Hammam Hamoudi, are leaning toward withdrawing Maliki’s nomination to avoid internal disputes and possible US sanctions.
However, officials from Maliki’s State of Law Coalition rejected reports of a retreat.
Hisham al-Rikabi, director of the coalition’s office, said reports of withdrawing Maliki’s candidacy were "claims and a malicious media campaign aimed at confusing public opinion". He said the Coordination Framework "remains committed to its declared political positions and to its candidate for the next phase".
Hussein al-Sadiq, a member of the coalition, said "the current media pressure aimed at isolating Maliki or pushing him to withdraw will not succeed", stressing that the nomination was a decision of the Coordination Framework, which he described as the largest parliamentary bloc.
He added that discussion of withdrawal would only take place if agreed within the alliance, saying it was illogical for Iraq to "submit to tweets and social media posts, whether from US President Donald Trump or anyone else".
Last month, Trump wrote on his Truth Social platform: "The last time Maliki was in power, the country sank into poverty and massive chaos. That must not happen again… Because of his policies and crazy ideologies, if he is elected, the United States will not provide any future assistance to Iraq."
Political analyst Talal al-Jubouri told Al-Araby Al-Jadeed that the Coordination Framework is "in a bind and embarrassed" over Maliki’s nomination. He said some factions are seriously considering sidelining him to prevent further US intervention in Iraqi affairs.
Al-Jubouri warned that maintaining Maliki’s candidacy could place the Shia alliance in "an open and direct confrontation" with the US administration, particularly amid US demands regarding Iraqi armed factions and ties with Iran. Iraq bloc may drop Maliki from PM nomination after US threats
The Dollar Is On Track For Its Best Weekly Performance In Four Months
Money and Business Economy News - Follow-up The dollar is on track for its best weekly performance since October on Friday, supported by a series of better-than-expected economic data, estimates that the Federal Reserve is leaning towards further monetary tightening, and tensions between the United States and Iran.
The dollar received additional support last night after data showed that the number of Americans filing new claims for unemployment benefits fell more than expected last week, confirming the stability of the labor market.
The dollar held onto its gains in early Asian trading on Friday, leaving sterling struggling near a one-month low of $1.3457. Sterling is on track for a weekly decline of around 1.5 percent.
The euro fell 0.02 percent to $1.1768 and is on track for a weekly decline of 0.8 percent, weighed down by uncertainty over the continued tenure of European Central Bank President Christine Lagarde.
Against a basket of currencies, the dollar index hovered near its highest level in a month, which it recorded on Thursday, and reached 97.89 in recent trading. It is on track to achieve a weekly gain of more than one percent, which would represent its strongest performance in more than four months.
Fears of a conflict between the United States and Iran have contributed to supporting the dollar this week as a safe haven.
US President Donald Trump warned Iran on Thursday that it must reach an agreement on its nuclear program or "very bad things" will happen, setting a deadline of 10 to 15 days, prompting Tehran to threaten to retaliate by targeting US bases in the region if it is attacked.
Markets are currently awaiting the US core personal consumption expenditures price index and fourth-quarter GDP data due later today.
According to the CME FedWatch tool, investors still expect the US central bank to cut interest rates twice this year, although expectations of such a move in June have fallen to about 58 percent from 62 percent a week ago.
The Australian dollar fell 0.08 percent to $0.7055, but is expected to lose only 0.2 percent over the week, as it remains supported by expectations of tighter monetary policy at home. https://economy-news.net/content.php?id=65855
Supreme Court Ruling On Trump's Fees Ignites Legal Battle To Recover $170 Billion
Money and Business Economy News - Follow-up Thousands of companies are preparing to launch what could become a protracted legal battle to recover up to $170 billion in tariffs they have already paid to the U.S. government, after the Supreme Court struck down a key trade policy tool of President Donald Trump, Bloomberg reported.
The Supreme Court did not address the issue of recovering the funds when it ruled on Friday that Trump did not have the legal authority to impose those tariffs under an emergency law.
"They take months to write their opinion, and they don't even discuss this point," Trump said during a press conference following the ruling, adding, "We will finish this in the courts within the next five years."
Following the Supreme Court's decision, the US president announced the immediate imposition of new global tariffs of 10%, based on a different legal provision. However, this will not stop the flood of lawsuits that companies intend to file in an effort to recover the tariffs they have paid.
Global Repercussions And Legal Preparations
The loss to the US administration is expected to reverberate across the global economy, as the size and scope of any potential recovery would be unprecedented, according to Bloomberg.
A wide range of companies, large and small, public and private, have spent the past months preparing to improve their legal positions to recover the fees they paid, should the court overturn Trump's actions.
Among the companies being asked to reimburse are retailers such as Costco, major industrial companies such as the American aluminum producer Alcoa, along with well-known brands and hundreds of small businesses. Most of these companies are based in the United States, but they also include local branches of foreign companies.
The White House announced on Saturday that the administration of US President Donald Trump will end some customs measures, following the Supreme Court's decision to overturn the tariffs.
Among the key questions left unanswered for U.S. importers by the Supreme Court ruling are the opportunities and mechanisms for recovering funds collected by the government during the past year under the International Emergency Economic Powers Act, the law that formed the core of the case.
The vote against the Trump administration's decisions was 6-3, with Justice Brett Kavanaugh dissenting, stating, "The Court today says nothing about whether, and if so, how, the government should return the billions of dollars it collected from importers." He added, "But that process is likely to be messy, as was acknowledged during oral arguments last November."
$170 billion
U.S. Customs and Border Protection has so far collected an estimated $170 billion in tariffs imposed by Trump based on the International Emergency Economic Powers Act, the law that has been the subject of legal dispute, Bloomberg noted.
The court ruled that the use of the International Emergency Economic Powers Act to impose customs duties was not legal, but the judges did not address the issue of importers' right to a refund, leaving these matters to the lower court to decide.
The case is scheduled to return to the U.S. Court of International Trade for a new round of legal wrangling.
While the judges were considering the case, more than 1,500 companies filed their own claims before the Commercial Court, with the aim of securing a place in the queue of those claiming a refund of fees.
In recent months, the U.S. Commercial Court has been pressing the Justice Department for at least a preliminary indication of how it will handle the issue of restitution if the administration loses to the Supreme Court.
US President Donald Trump is set to impose additional global tariffs of 10% within the next three days.
Retail and clothing companies were the most concerned, as the tariffs added significant costs for companies that import goods from Asian countries such as China and Vietnam.
The ruling comes amid a wave of earnings announcements from retailers, including Home Depot, which is scheduled to announce its results next Tuesday.
Although most companies report results for financial periods that ended before the decision was issued, Neil Saunders, managing director at data analytics firm GlobalData, said the move could affect earnings and future guidance.
He added: "If companies have already factored in very high costs for fees, there may be room for additional gains."
For his part, Zach Stambour, principal analyst at market research firm eMarketer, wrote: "While the decision provides some near-term relief, it does not dispel the broader uncertainty surrounding trade policy that retailers and brands are facing."
He added: "We expect the ruling to create a moderate boost to retail sales starting this year, but this effect will gradually fade by 2028."
In written memoranda, government lawyers said the administration would not contest the court's authority to issue orders to recalculate duties, but left open the possibility of seeking to restrict the scope of importers eligible for refunds.
The U.S. Court of International Trade has experience in managing mass refunds. In 1998, after the Supreme Court overturned the port maintenance levy imposed on exporters, the court established a mechanism for receiving claims.
According to court records and reports from that period, the battle at the time involved approximately 4,000 cases and nearly $750 million in taxes paid.
However, the scope of the disputed tariffs imposed by Trump is much larger, as the US government informed the trade court that by the end of 2025, more than 300,000 importers had paid those tariffs.
Legal Dispute Over The Form Of Restitution
Ted Murphy, a partner at Sidley Austin, said the ruling means for importers "there is a possibility of a refund," adding that the form and duration of the refund process "are a big issue."
For his part, Daniel Mack, a partner at the international law firm Brian Cave Leighton Paysner, considered the issue of recovery to be "solvable," explaining that the Commercial Court could consolidate all individual claims into a single case.
The National Retail Federation called for a simplified refund mechanism, with David French, the federation's executive vice president of government relations, saying in a statement: "We urge the lower court to ensure a smooth process for returning duties to American importers," adding that easing the burden of duties would provide an economic boost that would allow companies to invest in their operations and other areas.
The emergency law of 1977 makes no mention of customs duties and has never been used to impose them. However, businesses remain subject to other customs procedures.
According to Treasury Secretary Scott Bessent, the U.S. Treasury Department, which has about $774 billion in cash, has enough liquidity to reimburse the revenues from the duties imposed under the International Emergency Economic Powers Act, if ordered to do so, but the process could take weeks or months, and could extend for more than a year.
US President Donald Trump said on Friday he intends to use new trade powers in response to the Supreme Court ruling that overturned the sweeping tariffs.
Bisent also pointed out that refunds could turn into an "institutional waste" for companies that passed the burden of the fees on to consumers, asking: "Costco, which is suing the U.S. government, will it refund its customers?"
Michael Feder, chairman and co-founder of Lalo, a baby products company, told Bloomberg that his company will take all necessary steps to recover more than $2 million in fees it paid under the latest Supreme Court orders.
He added: "We don't expect refunds to be issued overnight even if our files are complete, but we want to be at the front of the line."
He noted that the company worked with its suppliers to reduce costs, and passed on only a "limited amount" of the fee burden to customers, and has not yet decided how to proceed if those funds are recovered, saying: "We'll cross that bridge when we get there."
Disparities Between Sectors And Companies
Bloomberg believes that some industries are likely to receive a larger share of the fees collected under the International Emergency Economic Powers Act up to December 14.
According to an analysis by Bloomberg Economics, the textiles, toys, food and beverage sectors top the list of industries that import finished goods, including wholesalers, retailers and manufacturers with factories outside the United States. Companies that import tariff-subject components to manufacture goods within the country are led by the machinery, electronics and automotive sectors.
Nicole Gorton-Karatelli and Chris Kennedy of Bloomberg Economics said the construction sector, from its purchases of electrical equipment and appliances that may be installed in new buildings, also appears to be particularly vulnerable.
They added that "the size of the company will play a role in determining the value of potential refunds, as any refunded amounts will go to the registered importer who actually paid the duties, meaning that large companies that import themselves will be more likely to receive a refund directly compared to small companies that buy from wholesale importers."
Joe Feldman, an analyst at Tielsey Advisory Group, said the ruling raises more questions than it provides definitive answers for the retail sector.
Congress was divided after the Supreme Court's ruling to overturn Trump's tariffs, with some Republicans and Democrats offering a cautious welcome, while Republican leaders sought an alternative course of action.
He explained that companies' attempts to recover the money they paid will take time, and that commodity prices often do not decrease after they rise, with the exception of basic commodities such as milk and eggs.
Although some operators may benefit from improved profit margins in the near term, they are unlikely to get a sudden cash flow or radically change their pricing structure.
Meanwhile, customs brokers and lawyers warned companies that the US administration might place obstacles in the way of obtaining refunds, such as requiring companies to prove that they did not pass the cost on to consumers, or to provide detailed documentation for each shipment.
Currently, importers are required to at least organize their records in anticipation of refund claims being paid, even if the mechanism for this is not yet clear.
U.S. Customs and Border Protection recently announced that, effective February 6, the Treasury Department will no longer issue the agency's refunds via paper checks, but will instead switch to electronic payments.