Prime Minister Christopher Luxon states that New Zealand is "extremely well-prepared" to handle the situation. worldwide duties implemented by the US .
The new tariff imposed by US President Donald Trump on goods from New Zealand came into play over the weekend; however, at 10 percent, it was significantly milder compared to what numerous other nations faced—such as Vietnam’s 46 percent and China’s additional 34 percent on top of pre-existing duties.
The imposed tariffs caused markets to reel, with losses akin to those during the global financial crisis, the advent of Covid-19, and the 1987 Black Monday crash.
Luxon told Morning Report Ahead of theNZX’s opening on Monday, the government was diligently fostering both bilateral and multilateral relations aimed at facilitating the unrestricted flow of goods and services.
When asked about his concerns regarding the New Zealand stock market, Luxon stated that it was "a very worrying period for everybody globally, with people feeling uncertain about what lies ahead."
However, the truth is that New Zealand is exceptionally well-placed compared to many other nations when facing this situation. While it’s not ideal, we have the ability – and will – to pursue our national interests. We’ll keep working to create more chances for businesses across New Zealand globally.
Prime Minister Luxon regarding Trump's 10 percent tariff on New Zealand (6 min 24 sec)
Luxon stated that New Zealand was among more than 50 nations not included. The Trump administration stated that they wanted to initiate fresh trade discussions with the U.S. following the imposition of tariffs. .
"We'll continue to advocate against tariffs. We think trade wars and tariffs are bad for the global economy. We don't support that. We don't think that's the way forward. We continue to make our case around that."
Luxon stated that Trump’s assertion of a 20 percent tariff on U.S. products from New Zealand was incorrect, and mentioned that New Zealand authorities were engaging in discussions with their U.S. peers regarding this matter.
"They've basically taken a calculation This basically refers to the ratio of our trade surplus in goods alone this year compared to what we export in goods overall. In essence, they have utilized this as an approximation for tariffs.
"The The actual tariff rate is 1.9 percent. , and in most cases, I believe 94 percent of the time, the tariffs we encounter in America are higher."
When asked whether the US was behaving like a "friend," Luxon stated that Trump was carrying out his promises from the election campaign.
You have a president who ran a campaign that was quite open and direct regarding tariffs as part of both his platform and policies, and he’s clearly putting this into action – even though we might not agree with it.
We maintain friendships with the United States and numerous other nations, yet we do have differences with them. This happens to be one such issue where our views clash. Simply put, we believe this isn’t beneficial for the world’s economic health.
New Zealand Trade Minister Todd Mcclay has dismissed the idea of imposing counter-tariffs on imports from the United States.
Luxon stated that the future of trade for New Zealand involves "building alliances" with other countries, exemplified by pacts like the CPTPP – and possibly broadening this approach to incorporate the economically dominant nation of China.
Okay... when it comes to the CPTPP, there are several key requirements that applicants must follow. Essentially, there are three main principles involved here, and these standards should remain consistent... so they won’t shift because of this situation. Applicants do need to fulfill certain conditions, but perhaps we can expedite the process slightly.
Introducing the EU was also an option.
This is an extremely thorough and top-notch agreement that we strongly recommend everyone should consider joining. However, there’s a procedure involved, as you would appreciate, regardless of the specific country or area concerned. This ensures we attract high-quality partners who uphold the principles of the global rules-based order and trade agreements.
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