US Woos Kazakhstan for Minerals, Slaps on Sweeping Trade Tariffs

A high-level American delegation, led by U.S. Chamber of Commerce Senior Vice President Khush Choksi, has arrived in Kazakhstan to lay the groundwork for a strategic partnership, with a primary focus on the nation’s vast reserves of rare earth metals. The business mission, taking place in Almaty and Astana, aims to strengthen economic ties in key sectors, signaling a new chapter in the bilateral relationship that Washington sees as increasingly vital.

The scale of the 2025 mission is unprecedented, having doubled in size from the previous year. It includes executives from over 20 major American corporations and officials from three U.S. government agencies: the Export-Import Bank, the Trade and Development Agency, and the Department of Commerce. According to Jennifer Miel, a vice president at the U.S. Chamber, the visit will focus on critical minerals, logistics, and forging direct contracts between U.S. and Kazakh companies, culminating in a planned business council meeting with Kazakh President Kassym-Jomart Tokayev in New York.

Khush Choksi underscored the growing strategic importance of the Central Asian nation, stating, “Kazakhstan’s strategic location plays an increasingly significant role for the United States.” The interest is heavily driven by mineral wealth; of the 50 minerals designated as critical by the U.S. Department of the Interior, 19 are found in Kazakhstan, with an estimated 5,000 unexplored deposits. While Choksi noted that investment decisions would depend on a predictable business and legal environment, he expressed optimism about the “enormous opportunities” these resources present.

Fueled by over $1 billion in geological exploration investments since 2018, Kazakhstan is positioning itself as a global powerhouse in the sector. The country’s Ministry of Industry recently announced the discovery of 38 new deposits, and major finds could place Kazakhstan among the world’s top three leaders in rare earth reserves, behind only China and Brazil. A tangible sign of this cooperation is already in place, with the American firm Cove Kaz Capital Group engaged in a joint exploration venture with the Kazakh state-owned company Tau-Ken Samruk.

However, this burgeoning partnership is overshadowed by a starkly contradictory policy from Washington. In a move to correct what he termed a persistent trade imbalance, U.S. President Donald Trump has reportedly imposed sweeping customs duties on all goods imported from Kazakhstan. In a message to President Tokayev, Trump stated that the tariffs could be avoided if Kazakh companies choose to manufacture their products within the United States, warning that any retaliatory duties from Kazakhstan would be met with further increases.

This new trade dispute presents a formidable challenge for Astana and casts a pall over the promising mineral talks. The situation draws parallels to Kazakhstan’s decades-long, unsuccessful effort to secure the repeal of the Jackson-Vanik amendment, a Soviet-era trade restriction. Observers believe that negotiating a reversal of the new tariffs will be a difficult diplomatic battle, leaving the future of the enhanced economic partnership hanging in the balance.