Due to its small size, Kazakhstan will not counteract the US tariff increase.
Kazakhstan International News Agency reported on April 10th. Deputy Prime Minister and Minister of National Economy Serik Zhumankalin made a response today at the press conference after the plenary session of the Mazhilis (the lower house of parliament).
"At present, we are only an information recipient and have not considered taking any countermeasures. In fact, the current tariff policy of the United States does not substantially affect most of our goods. Because many of the goods we export fall within the special list. Kazakhstan has always been a reliable raw material supplier to European and American countries, including uranium, crude oil, silver, high-carbon ferrochrome, etc., which are not subject to the additional tariffs," he said.
Zhumankalin pointed out that only about 5% of goods are affected, with a trade volume of approximately $100 million.
"The impact of this part of goods is relatively limited. We need to assess whether the current export price can cover the cost of the new tariff, whether the market demand has sufficient elasticity, and whether it is necessary to compress profit margins. If it is difficult to bear, we will consider exploring other export markets," he added.
According to the Prime Minister's official website, in order to implement the important instructions of the head of state, the Kazakh government has decided to allocate 4 billion tenge from the national reserve fund to support agricultural production. The relevant resolution was signed by Prime Minister Bolatbek Beketayev.
Original text: https://www.toutiao.com/article/1828989555963203/
Disclaimer: This article only represents the personal views of the author.