President warns of aggressive trade policies by some countries

Some countries may adopt aggressive trade policies that directly compete with Uzbekistan. This was stated by the President of the Republic of Uzbekistan, Shavkat Mirziyoyev, on April 18 during a videoconference meeting focused on measures to mitigate the impact of global economic shocks on various sectors and industries in Uzbekistan.

According to the head of state, countries facing high import tariffs may now attempt to penetrate markets where Uzbekistan currently exports its products, by pursuing more aggressive trade policies. These markets include yarn, fabric, finished textiles, and household appliances—sectors in which Uzbekistan has made significant progress.

As highlighted during the meeting, high tariffs alone are expected to reduce the volume of international trade by $3.5 trillion. Additionally, global inflation is projected to rise by 7.5 to 8 percent.

“The fact that international financial markets lost $10 trillion in just three to four days should serve as a serious warning for us. The greatest risk is the disruption of global supply and value chains, similar to what occurred during the pandemic,” said President Mirziyoyev.

The President emphasized that such disruptions could particularly affect Uzbekistan's key export-oriented industries such as textiles, electrical engineering, automotive, and food production.

Trump’s tariff policy

For reference, in early March, former U.S. President Donald Trump increased tariffs on Chinese imports from 10 percent to 20 percent, citing China’s alleged failure to take appropriate steps to address the illegal drug crisis. Late last week, Trump announced new import tariffs on goods from more than 180 countries and territories, including China.

In response, Beijing warned that it would impose reciprocal tariffs on American goods. Trump stated on April 7 that if China did not remove its retaliatory measures, an additional 50 percent import tariff would be implemented starting April 9. The United States later imposed a 104 percent tariff on products imported from China. In turn, China announced new retaliatory tariffs of 50 percent on American imports, in addition to the previously imposed 34 percent, bringing the total to 84 percent. The U.S. then escalated its tariffs further to 125 percent, and eventually to 145 percent.

It is worth recalling that Kazakh President Kassym-Jomart Tokayev held an emergency meeting in response to the evolving international market situation. Speaking with the public in Shymkent on April 14, he warned that a complicated global situation is emerging due to the threat of a full-scale trade war, which could escalate into armed conflicts.