United States Imposes a 27% Retaliatory Import Duty on Kazakhstani Goods
2025 Trade Tussle: Unpacking the Impact of U.S. Tariffs on Kazakhstan
ASTANA - In a bold move, U.S. President Donald Trump announced a series of tariffs on imports from multiple nations, with Kazakhstan among the list. On April 2, Trump revealed a 10% minimum tariff on goods entering the United States and slapped a 27% reciprocal tariff on imports from Kazakhstan, during a speech in the White House Rose Garden.
Photo credit: esfera/Shutterstock.
This announcement aimed to address trade imbalances and safeguard the U.S. economy, according to Trump. The new tariffs were to take effect on April 5, with reciprocal tariffs rising on April 9. Interestingly, the White House published the list of affected countries on X social network. Among the countries singled out, China imposed the steepest tariff of 34% on the 67% it charges the U.S., while Kazakhstan imposed the second-highest tariff on American goods at 54%.
Kazakhstan's Trade Ministry expected only 4.8% of exports to be affected by these new tariffs, as key exports such as oil, uranium, silver, and ferroalloys remained untouched. Only products worth $95.2 million, such as phosphorus, ferrosilicon, lenses, wheat gluten, and ammonium nitrate, faced additional duties. The government initiated consultations with the U.S. to discuss potential tariff removals and continued adherence to WTO's principles of open and non-discriminatory trade.
But how might these tariffs impact Kazakhstan in the long run? Beata Javorcik, EBRD's chief economist, shed light on the potential indirect effects in a recent interview. She suggested that the U.S.'s tariff hikes may cause a ripple effect, disrupting global trade dynamics and affecting Central Asian economies like Kazakhstan.
Though the immediate impact on Central Asian economies might be limited due to reduced trade ties with the U.S., the tariffs could initiate supply chain disruptions across the globe. Moreover, the new tariffs might prompt affected sectors to explore alternative markets, potentially enhancing regional cooperation and investment opportunities in raw materials supply chains[1].
China, being heavily invested in the region, is likely to maintain its dominant role in Central Asia despite efforts to diversify trades[1]. Kazakhstan's long-term economic growth and stability could hinge on its ability to navigate global trade policies and attract sustainable investments that leverage the country's rich natural resources and strategic position[3].
As the global trade landscape evolves, it's crucial for Kazakhstan to explore new partnerships and forge their path towards a resilient, independent economy. The indirect effects of the U.S.'s tariffs on Kazakhistan may prove to be a catalyst for growth and adaptability in the years to come.
- The U.S.'s tariffs on Kazakhstan, to be implemented in April 2024, include a 10% minimum tariff on all goods and a 27% reciprocal tariff on specific imports like phosphorus, ferrosilicon, lenses, wheat gluten, and ammonium nitrate.
- Kazakhstan's Trade Ministry estimates that only 4.8% of exports will be affected by these tariffs, predominantly products worth $95.2 million.
- In the long run, the indirect effects of these tariffs may cause a ripple effect, disrupting global trade dynamics and affecting Central Asian economies like Kazakhstan.
- Kazakhstan's economic growth and stability could hinge on its ability to navigate global trade policies, attract sustainable investments, and forge new partnerships, particularly in the wake of the U.S.'s tariff hikes.
