NZ will not release reciprocal tariffs against us: luxon

The first -minister Christopher Luxon says New Zealand is “relatively well positioned” to face Donald Trump’s new global tariffs because he was hit by the US -based “baseline fare, while other countries had received” much higher “.

Luxon said this afternoon that he does not believe that “commercial tariffs and wars” are the way to follow the world and warned of the impact on the global economy.

He said New Zealand would not respond with reciprocal tariffs because “we are a low tariff country and we benefit from it.”

“What we wouldn’t like to do is increase prices here in New Zealand and increase inflation here in New Zealand doing this, which is exactly what would happen.”

Explaining why New Zealand is well positioned, he also reiterated the “good relationships” that the government has with this government and that New Zealand “balanced” the complementary trade “with Americans.

“We are not contributing to their commercial deficits they are facing.”

Luxon said the impact “is not so much the impact on our commercial relationship with the US, it is more about what this means on global economy and global head winds.”

“For us, it is about ensuring that we find the right consumers and the right customers in large markets like the US.”

He said exporters with whom he has recently talked to can still see “good long -term growth opportunities” and there is good demand for New Zealand products and services.

“Our exporters are some of the most agile in the world, very, very competitive and we will ensure that we did everything to support our exporters and advance the national interest of New Zealand.”

He said the Thursday announcement was not a surprise, as the US president campaigned about this policy.

“New Zealand is relatively well positioned” and the government has worked hard last year to create “new opportunities everywhere,” said Luxon.

But he emphasized that the tariffs “were not the way to follow.”

“But let’s get clear, tariffs and a trade war – it’s not good for the global economy.

“There are about $ 900 million in tariffs being level in New Zealand exporters, and this will be broadcast to US consumers sadly.”

He said the “biggest concern” would be the global impact and “tit washing for tat commercial wars that can follow.”

In the 20%tariff rate, the US said New Zealand imposed on it, Luxon said he did not understand how this number had been calculated.

“This is something we will discuss with the administration.”

Speaking of Auckland, labor leader Chris Hipkins described Trump’s new tariff regime as disappointing.

He said the tariff deployment will be immensely disturbing to the global economy and will harm New Zealand exporters.

“It’s not just the impact that Trump fares will have New Zealand exporters to the US, but it will also have an effect on the global economy that will affect our exporters. It will be an extremely disturbing move to the global economy,” he said.

He added that this would lead to a “realignment” of global trade and urged New Zealand to continue to speak out against them.

Hipkins said the government made a decision of principle by saying that it would not retaliate by imposing its own tariffs.

“A tariff war, where tariffs only increasing rapidly, would be a disaster for exporting countries like New Zealand. Ten percent is bad news, 20% would be disastrous news. We won’t get involved in a tariff rise.”

The Minister of Commerce responds

Commerce Minister Todd McClay has confirmed that New Zealand exporters will face a 10% rate in all goods for the United States, starting this weekend.

There is no indication at this stage, there will be any changes or duties imposed on the services of New Zealand.

President Donald Trump announced on Thursday that he would instigate reciprocal tariffs in countries that impose tasks on other countries – including the response to what he said was a 20% rate on New Zealand’s US goods.

McClay confirmed that New Zealand does not have a 20% rate of tariffs that also subject US exports.

New Zealand employees would be in charge of conveying this message to us, counterpartes, that McClay said he was assuming New Zealand applies to 20% due to a rate connected to the World Trade Organization.

In fact, New Zealand has applied a much lower rate to US exports to New Zealand, McClay said.

Foreign Minister Winston Peters said US calculations were a mistake, but it was “immaterial” and questioned why it was a concern.

“If you think this is significant, we have achieved a much more reasonable agreement than anyone else.”

He said it was “a day of celebration,” as many countries closer to the United States had been worse than New Zealand and paid tribute to those who had worked behind the scenes involving the US.

“Today I am delighted that this is the result. Many of our exporters need to know that they have a 15%advantage more about their competitors in the United States, and we will change it very fast if they take it positively,” said Peters.

Peters traveled to the US last month, where he met his secretary of state Marco Rubio, for more information about possible tariff walks and defending New Zealand not to be very bite.

In recent days, McClay has talked to several companies that export to the US and said they “still see them” in this market.

He added that “it was important to note that many other countries around the world are facing much higher rates.”

“Although not unexpected, it will have an impact on New Zealand’s exports.”

McClay said in Parliament on Thursday morning, there was no sense of relief in only 10% being applied because the tariffs “were not good for commerce, so we are not feeling relieved.”

“Although I think there is a recognition that New Zealand is not seen as one of the countries that has an unbalanced business relationship with the US.”

He said it was not surprising to be captured by tariffs in one way or another, and regardless of independently, New Zealand will continue to have a “constructive and very positive relationship” with America.

Commercial employees are also clarifying with the US if the 10% are additional to fees already paid.

“It looks like it’s a general fare, but we’re trying to clarify it quickly.”

New Zealand has no retaliation plans against US tariffs, because it would “put prices to New Zealand consumers and would be inflationary,” he said.

New Zealand exports about $ 9 billion in goods to the US; Therefore, the cost of a 10% rate would be about $ 900 million for exporters.

“I think there is some very clear evidence that will be used by American consumers, not exporters of New Zealand,” he said.

As for New Zealand’s average rate of tariffs is in the US, McClay said it was about 2%.

This number, and how low it is, is a point that was made to the US in negotiations between the two countries, he said.

Labour’s work -worker Damien O’Connor said it was disappointing New Zealand could not guarantee a lower rate and questioned the success of Peters negotiations in Washington DC.

O’Connor said he had no idea how the US landed at the 20% tariff rate for New Zealand’s subjects.

“I think it would be a very brave person to try to make some calculations about how the US works a lot at the moment. This is quite unhappy, not just for New Zealand, but in fact for everyone else facing 10%, at least more, more tariffs on goods that export to the US.”

O’Connor said it was hard to imagine that any friend would hinder the world of commerce the way the US had, but New Zealand would continue to negotiate with its second largest commercial partner.