Deputy Minister of Trade and Integration Zhanel Kushukova has announced Kazakhstan’s decision to send a high-level delegation to the United States for consultations on import duties, marking a proactive step to address trade challenges and strengthen economic ties. This move comes amid heightened tensions in global trade after sweeping tariffs were unveiled by U.S. President Donald Trump, including a significant 27% duty on Kazakh goods. The delegation aims to foster dialogue on reducing trade barriers, advocate for the equitable treatment of exports, and explore exceptions for certain goods. No date has been set for the visit yet.
The decision demonstrates Kazakhstan’s commitment to bolstering its position as a key player in international trade. The targeted discussion will focus on sensitive issues, including tariffs impacting industries such as crude oil, uranium, silver, and ferroalloys, which, as noted by the Ministry of Trade and Integration, “constitute 92% of total exports.” As previously reported by The Times of Central Asia, while these goods might qualify for exemptions under U.S. regulations, the higher tariff symbolizes a broader challenge for Kazakhstan in its response to navigating the evolving trade landscape.
Context of Trump’s Tariff Policy
The 27% tariff imposed on Kazakhstan stands out as by far the highest targeting Central Asia, where neighboring Uzbekistan, Turkmenistan, Tajikistan, and Kyrgyzstan will face a 10% baseline duty. Billed as addressing trade imbalances and protecting U.S. industries – though the methodology behind the administration’s calculations has baffled many analysts – Trump’s tariff regime has introduced a layered system targeting a raft of nations. While China has been hit hardest, with seemingly ever-increasing duties now standing at a dizzying 145%, even smaller economies such as impoverished Cambodia (49%) and Laos (48%) have been caught in the crossfire, raising concerns about disproportionate impacts on developing nations.
While Trump stepped back from the brink on April 9, announcing a 90 day pause for the majority of countries before doubling down on China, companies such as Apple – the world’s most valuable publicly listed company – had already experienced a fall in market capitalization of more than $300 billion on the day after the policy was announced, its’ worst single-day drop since 2020. Amidst a slump in markets globally, meanwhile, U.S. Federal Reserve chair, Jerome Powell, has warned that Trump’s tariffs will hit the U.S. economy and lead to rising prices.
Economists have noted the potential ripple effects of tariffs on global markets, with fears of supply chain disruptions and stagflation growing. For Kazakhstan, a resource-rich economy striving to diversify beyond its traditional oil and mining industries, the heightened duties could dampen its exports while complicating efforts to attract foreign investment. However, analysts such as Rasul Rysmambetov have argued that Kazakhstan’s relatively small share in global trade may shield it from significant fallout, with the tariff largely “symbolic” in nature.
Opportunities Amid Challenges
Despite these challenges, Kazakhstan is attempting to leverage the situation to advance its diplomatic and economic strategies, with the country’s Ministry of Trade and Integration working to secure specific exemptions for strategic materials, which remain essential for U.S. industries. Recent discoveries, such as a major rare earth deposit in the Karaganda region, could further enhance Kazakhstan’s appeal as a source for critical minerals, strengthening its bargaining position in negotiations with Washington. In terms of rare earth elements (REEs) – critical in the production of a huge range of high-tech products from catalytic converters to smartphones and cars – China currently dominates their global mining and refining, leading to calls for U.S. diversification of global supply chains, particularly towards Central Asia.
U.S. officials have previously expressed their interest in collaborating with Kazakhstan, especially in sectors such as energy, telecommunications, and rare earth metals. Statements from the U.S. State Department and recent discussions between key diplomats have underscored a mutual interest in deepening ties. This aligns with Kazakhstan’s strategy of pursuing a multi-vector, balanced foreign policy that emphasizes engagement with global players whilst establishing itself as a middle power.
Global Trade Implications
The Trump administration’s tariff policy has sparked a global backlash, with European Commission President Ursula von der Leyen condemning the move as harmful to the international economy, particularly for vulnerable nations. The EU was busy courting regional leaders at the recent first EU-Central Asia summit in Samarkand, where a $13.2 billion package was pledged.
For Kazakhstan, the heightened tariffs come at a crucial juncture as it seeks to redefine its economic trajectory. Proactive engagement with the U.S. through consultations reflects its determination to secure a favorable outcome and maintain its standing in the global market. While uncertainties linger, Kazakhstan’s approach highlights the importance of diplomacy and adaptability in navigating the complexities of modern trade dynamics.
Developments around tariffs and trade negotiations hold significant implications not just for Kazakhstan but for global markets in general. Whether these consultations yield immediate results or serve as a foundation for future cooperation, they signal Kazakhstan’s intent to remain an active and influential actor on the world stage.
