Uzbekistan stands strong amid US tariffs
Like many other countries, the United States has imposed import tariffs on goods from Uzbekistan. A 10 per cent tariff has been applied to all Uzbek imports.
In announcing the decision, US President Donald Trump described it as a “Declaration of Economic Independence” and proclaimed April 2 as “Liberation Day.” He stated that the measure aims to combat unfair trade practices and safeguard American jobs.
Trade relations between the two countries have seen growth in recent years. By the end of 2024, the total trade turnover between the two nations reached $881.7 million, up from $765.1 million in 2023, as per some estimates. This includes a rise in Uzbekistan’s exports to the US, which climbed to $317.4 million in 2024 from $253.1 million the previous year.
Meanwhile, American exports to Uzbekistan reportedly also saw a similar upward trend, growing from $512 million in 2023 to over $564.3 million in 2024.
The newly imposed tariff has sparked a variety of responses. Some experts and industry observers are concerned that the 10 per cent tariff could hinder Uzbek exports to the US, particularly in sectors such as textiles, which is a vital part of the country’s economy. Higher costs for US buyers may reduce demand for Uzbek goods, affecting producers and exporters.
However, others suggest that this policy presents a window of opportunity for Uzbekistan, in comparison to the steeper tariffs the US has placed on textile imports from other leading producers; a 10 per cent rate may be relatively modest. This could allow Uzbekistan to gain a competitive advantage and potentially increase its market share in the American market by offering high-quality products at more favourable prices.
What perhaps plays to the country’s advantage is the fact that with a long-standing cotton processing heritage, Uzbekistan now offers full in-country value chain capabilities—from cotton to finished garment.
To further understand the potential implications of US tariffs, Fibre2Fashion spoke with Isomiddin Mirzayev, Head of International Relations and Foreign Investment Department, Uztextile Industry Association.
He offered insights into how the Uzbek textile sector might adapt to the new tariff landscape and what strategies could help maintain or even enhance its position in the US market.
Below are the key takeaways from this interaction:
Some argue that the 10 per cent tariff on Uzbek goods could harm the country’s textile sector, making exports to the US less competitive. However, others see it as an opportunity, noting that the tariff is still lower than those imposed on many other major textile-producing nations, which could give Uzbekistan a relative advantage. What is your perspective on this?
Although the United States has imposed new tariffs on many Asian countries, Uzbekistan finds itself in a relatively more favourable position—falling into a tariff bracket with an overall burden ranging from 49.5 per cent to 69.5 per cent, depending on the product category (yarn, fabrics, knitwear, or finished goods).
These rates include both the base duty (e.g., 12–32 per cent) and an additional tax (VAT — 37.5 per cent).
Given that new US tariffs are often layered on top of existing ones, Uzbek products may also be subject to double taxation. However, the total applicable tariffs for Uzbekistan are still lower compared to many other countries, particularly in Asia—where in some cases total duties may exceed even 80 per cent.
This potentially makes Uzbek products more competitive in the US market, especially amid the reallocation of orders away from countries like China.
With the current window of opportunity being discussed, how is Uzbekistan’s textile sector working to leverage the tariff advantage to strengthen its position in the US market?
Yes, there are clear grounds for intensifying efforts in this direction. Uzbekistan enjoys some of the lowest tariff rates among textile suppliers to the United States, which constitutes a massive competitive advantage.
The reduction of barriers for Uzbekistan—combined with rising tariff pressure on other countries—creates a favourable window for expanding its market share.
However, the actual export volume remains modest still—under $2 million annually. This reflects low activity and limited visibility of Uzbek brands in the US market.
Nevertheless, with proper positioning, a targeted marketing strategy, and optimised logistics, Uzbekistan could significantly increase its export volumes.
In addition to the challenges you have already mentioned, what other obstacles might Uzbekistan face in trying to boost its textile exports to the US?
Despite relatively low tariffs, the Uzbek textile industry faces several other challenges:
- High logistics costs: Shipping via Kazakhstan, Azerbaijan, Georgia, and Türkiye to the Port of New York costs around $11,000 per 20-ton container and takes around 45–50 days.
- Certification and compliance: Meeting US standards on quality, safety, origin, and sustainable production requires investment and technical expertise.
- Limited volumes and fragmentation: Many producers in Uzbekistan are not yet equipped to fulfil large contracts required by the US retailers.
- Economic and political risks: Potential declines in US consumer demand due to recessionary trends or shifts in trade policy may also affect demand for imported textiles.
