Trump's tariffs face opposition from Tokayev, who advocates for a constructive discussion on the issue.
In a significant development, Kazakh President Kassym-Jomart Tokayev has responded to U.S. President Donald Trump's executive order signed on July 7, which extends certain tariff rates until August 1, 2025. The order, however, imposes a 25% reciprocal tariff on Kazakhstan starting from the same date.
Despite this, the Kazakh Ministry of Trade and Integration has announced that a substantial portion of Kazakhstan's exports will remain tariff-free. Key raw materials and strategic goods, including crude oil, uranium, ferroalloys, silver, tantalum, and titanium, are exempt from the new tariffs.
Crude oil, accounting for 56.2% of Kazakhstan's exports, will continue to be shipped to the U.S. tariff-free. This is crucial given Kazakhstan's significant role as a reliable energy supplier, particularly as U.S. crude imports from non-OPEC countries increase.
Kazakhstan is the world's largest producer of mined uranium, supplying 40% of the global market. This sector is also exempt from tariffs to ensure uninterrupted access to U.S. nuclear energy markets, which are expanding due to decarbonization efforts and incentives under the U.S. Inflation Reduction Act.
Ferroalloys, essential for steelmaking and manufacturing, are also exempt from tariffs. This exclusion supports robust demand in the automotive and infrastructure industries. Approximately 95% of Kazakhstan’s exports to the U.S. are exempt from tariffs, allowing most of the country's vital sectors to continue trade without additional costs.
President Tokayev emphasised Kazakhstan's commitment to developing fair, predictable, and mutually beneficial trade relations. He also confirmed Kazakhstan's readiness to continue a constructive dialogue aimed at finding a rational solution to trade concerns.
The dialogue between the U.S. and Kazakhstan regarding the introduction of duties on imports of Kazakh goods is ongoing, with no specific trade concerns mentioned in the latest reports. The letter from President Tokayev to President Trump was reported by Akorda.
Kazakhstan remains a long-standing trade and investment partner of the U.S., and the exemption of key raw materials and strategic goods from the new tariffs is expected to maintain this relationship. The impact on the U.S.-Kazakhstan relationship was not mentioned in the current reports.
[1] Source: Kazakh Ministry of Trade and Integration [2] Source: U.S. Energy Information Administration [3] Source: World Bank [4] Source: Kazakhstan's National Statistics Committee
- The ongoing dialogue between the U.S. and Kazakhstan on the introduction of tariffs on Kazakh goods is aiming to find a rational solution, with the focus being on policy-and-legislation and politics.
- The general-news worth noting is the Kazakh Ministry of Trade and Integration's announcement that substantial portions of Kazakhstan's exports, including crude oil, uranium, and ferroalloys, will remain tariff-free, ensuring continuity in the U.S.-Kazakhstan trading relationship.
