With Trump’s fees in all global markets, the prime minister is promising to fight for free trade-and not everyone is happy with it, writes Catherine McGregor in today’s bulletin extract.
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Tech spared the worst rates – for now
A week of whip in the world of tariffs ended with another flip-flop over the weekend. In a movement that left the giants of technology applauding, Donald Trump announced that smartphones, computers and other electronics will be exempt from 125% of the United States (Or is it 145%?) “Reciprocal” tariff in China.
Large technology companies like Apple, which had seen $ 773 billion scraping their value in just four days, can “breathe a big sigh of relief”, US technology analyst Dan Ives said on Saturday “Although perhaps not so much now that Trump’s Secretary of Commerce, says that electronic exemptions are not permanent.” Lutnick tried to rotate Chinese eye tariffs as a victory for the American technology industry, claiming that they would create “an army of millions and millions of people who fall into small screws to make” on American soil. This, of course, has always been a fantasy. Like Apple’s CEO, Tim Cook, he pointed outThe US lacks a basic set of tool engineers: “In China, you can fill several soccer fields.”
Peters, the pragmatist
If this last minute of retreat seemed chaotic, Winston Peters would probably agree, he would silently notice that he called. Speaking in HawaiiForeign Minister warned of what he called “hysterical” and “myopic” of military metaphors such as “trade war” and “fighting” for free trade. His comments doubled as a veiled rebuke from the first -minister Christopher Luxon, who last week stated that free trade “is worth fighting – and I’m ready for this fight.” More clearly, reports Adam Pearse in HeraldPeters added, “My advice to politicians is toning, wait until you see and know what’s going on.” With Trump’s latest flip-flop, Foreign Minister may be justified.
A PM-CEO for uncertain times
Your deputy may not be too impressed, but Luxon’s performance last week Drew measured compliments from commentators, including the former national function, and the first employee Georgina Stylianou in the post (Paywalled) and Anna Rawhiti-Connell on Spinoff. Both argued that the instincts of the Prime Minister-Minister Professional, Pro-Institution, Pro-Diplomacia-Faze a good option for this volatile moment. “You don’t have to feel remotely inspired by the words of Luxon or his love for free trade,” Rawhiti-Connell wrote, “but in front of a disinhibited and irritated Deferencing Bear that intends to burn institutions, they need to be.”
New Zealand economy captured in cross fire
As we will escape the worst economic damage, New Zealand is still ready to feel the effects of Trump’s economic graft. The silver lining? Lower interest rates, which economists say they probably continue to fall as global slowdown affects commodity prices and New Zealand exporters are hit. While the US has retreated in some of its China tariffs, our two largest trading partners are still going to “face to face, hammer and tong”, Kiwibank Jarrod Kerr.
The impact of all this turmoil on our export sector can lead to higher unemployment, while the broader climate of uncertainty can encourage companies to retreat in investment by creating another brake on the economy. In other words: Don’t be excited about this cheaper mortgage.
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