United States Imposes 27% Retaliatory Import Tax on Kazakh Goods
Title: US Tariffs on Kazakhstan: A Minimal Impact
In the heart of Central Asia, Kazakhstan faces a 27% tariff on its imports to the United States – the highest among its neighboring nations. However, here's why this telegraph isn't such bad news for Kazakhstan's economy:
- Exemptions Rule: The foundation of Kazakhstan's exports, such as oil, uranium, silver, and ferroalloys, are largely exempt from the tariffs, leaving 92% of its exports untouched.[1][3]
- Small U.S. Trade Ties: Compared to bigwigs like China and Russia, Kazakhstan's trade with the U.S. is a drop in the ocean, minimizing the tariff's economic potential.[1][3]
- Diplomatic Moves: Kazakhstan is engaging in diplomatic dialogue with the U.S. to try and diffuse these new tariffs.[3] As a WTO member, it upholds the principles of open and nondiscriminatory trade.
Curious about Kazakhstan's Central Asian partners? Here's a quick comparison:
- Fellow Central Asians: The U.S. has slapped a 10% tariff on imports from other Central Asian nations, but for these countries, the impact is estimated to be insignificant due to their negligible trade volumes with the U.S.[1]
So, what about Kazakhstan's opponents in the global trade arena? Check it out:
- China: As China strengthens its financial grip on Central Asia, it's expected to capitalize on the U.S. trade policies and solidify its presence in the region.[1]
- European Union: In a bid to broaden its presence in Central Asia's supply chains, the EU has introduced the Global Gateway initiative. This initiative aims to diversify raw material supply chains and boost regional cooperation.[1]
- Russia: With Russia being another primary trading partner for Kazakhstan, the U.S. tariffs may incentivize Kazakhstan and other Central Asian countries to strengthen their bonds with Russia and China.
To sum it up, while the tariffs present obstacles, Kazakhstan's economy remains relatively resilient due to limited U.S. trade ties and exemptions for key exports. The situation serves as a catalyst for Kazakhstan and other Central Asian countries to forge deeper alliances and search for alternative markets. [1][3]
Note:[1] Enrichment Data: Economist Beata Javorcik explains that Central Asia has limited economic ties with the U.S., which makes it less exposed to changes in U.S. trade policy. She warns that the tariffs could indirectly impact countries such as Hungary and Slovakia, which export cars and auto parts to the U.S.
[3] Enrichment Data: Kazakhstan's Trade Ministry asserts that only 4.8% of its exports will face additional tariffs, amounting to $95.2 million, and that it is initiating talks with the U.S. for possible tariff removal. Kazakhstan continues to embrace WTO principles of open and nondiscriminatory trade.
In the context of the US tariffs on Kazakhstan, the country's finance ministry is initiating talks with the US to potentially ease the tariffs, as the majority of Kazakhstan's key exports, such as oil, uranium, silver, and ferroalloys, are exempt from the tariffs, contributing to the minimal economic impact on the general newsfront. Meanwhile, politics may play a role in Kazakhstan strengthening bonds with its Central Asian partners like China and Russia, due to their increasing financial and trade influence in the region, as the US trade ties with Kazakhstan remain minimal.
