Herald NOW: Daily Sports Update: June 11 2025
Forsyth Barr Investment Strategist Zoe Wallis speaks about why the NZD has been moving higher and the impact of Trump/Musk on markets. Video / Herald NOW
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Scoop
4 hours ago
- Scoop
NZ Hit With 15% Trump Trade Tariff, Trade Minister Says He Will Push Back
New Zealand exports to the US will face a 15 percent tariff rate, it has been announced. The White House has revised its list of tariffs for particular countries and New Zealand has been put on a 15 percent base rate, up from the original 10 percent announced earlier. Trade Minister Todd McClay told Midday Report 's Charlotte Cook that New Zealand was being unfairly penalised for what is a small trade deficit with the United States. "It appears it has been done based upon countries that have a trade deficit with the US, who sell them more than they buy. "In New Zealand's case, that's about half a billion US dollars and in a scheme the size of the US economy it's really not significant or meaningful." McClay told Midday Report he had asked Treasury for urgent advice about Friday's development. "Many of the exporters are saying they have been able to absorb the 10 percent, or in many cases pass it on, but at 15 percent it is going to start having a greater effect on our exporters. "We sell about $9 billion worth of goods into the US every year and so a 15 percent tariff rate is meaningful, but again the difference in trade is not significant in the scheme of things." He maintained New Zealand had good relations with the US. "The first step will be to talk to them directly and we've been engaging a lot. In fact, it's been very good engagement, both at official level, [Foreign Minister] Winston Peters has been to Washington and I've met with my counterpart a number of times now." McClay said he had put in a request for a call with Ambassador Jamieson Greer and would expect that to happen over the weekend so he could "start making the case" for a lower tariff rate. US President Donald Trump announced the tariffs back in April and said he they would be imposed on more than 125 countries. Tariffs are paid by importers of products from other countries to their own governments, like taxes, effectively making imported goods more expensive for local consumers. Advocates say they protect local economies, while detractors say they reduce trade and push up prices. In announcing the initial range of tariffs in April, Trump caused confusion when he held up a chart saying New Zealand charged US goods a 20 percent tariff, which the New Zealand government denied. It ended up being 10 percent, which Finance Minister Nicola Willis at the time called "extraordinary". Prime Minister Christopher Luxon said New Zealand would not respond in kind. Two-thirds of Kiwi businesses in a survey earlier this year thought the tariffs would have a more severe global impact than Covid-19 and the global financial crisis over the next 12 months. Trump has repeatedly threatened a range of different tariffs on various nations since returning to the White House - most recently India, citing its own trade barriers and purchasing of energy and arms from Russia, and Canada, over its newfound support for Palestinian statehood.
1News
4 hours ago
- 1News
Trump reveals 25% tariff on India, unspecified penalties for buying Russian oil
The United States will impose a 25% tariff on goods from India, plus an additional import tax because of India's purchasing of Russian oil, President Donald Trump said today. India 'is our friend,' Trump said on his Truth Social platform, but its tariffs on US products 'are far too high'. The Republican president added India buys military equipment and oil from Russia, enabling Moscow's war in Ukraine. As a result, he intends to charge an additional 'penalty' starting on Friday (local time) as part of the launch of his administration's revised tariffs on multiple countries. Trump told reporters today the two countries were still in the middle of negotiations on trade despite the tariffs slated to begin in a few days. 'We're talking to India now," the president said. "We'll see what happens.' ADVERTISEMENT The Indian government said today it's studying the implications of Trump's tariffs announcement. India and the US have been engaged in negotiations on concluding a 'fair, balanced and mutually beneficial' bilateral trade agreement over the last few months, and New Delhi remains committed to that objective, India's Trade Ministry said in a statement. Trump today signed separate orders to tax imports of copper at 50% and justify his 50% tariffs on Brazil due to their criminal prosecution of former President Jair Bolsonaro and treatment of US social media companies. Trump also signed an order saying that government now had the systems in place to close the tariff loophole on 'de minimis' shipments, which had enabled goods priced under $800 (NZ$1355) to enter America duty-free, largely from China. Trump also said on Truth Social that he was meeting today with a trade delegation from South Korea, which currently faces 25% tariffs starting on Friday (local time). He also said the US has reached a deal with Pakistan that includes the development of its oil reserves. Meanwhile, Treasury Secretary Scott Bessent was briefing him on trade talks with China. Trump's view on tariffs Trump's announcement comes after a slew of negotiated trade frameworks with the European Union, Japan, the Philippines and Indonesia — all of which he said would open markets for American goods while enabling the US to raise tax rates on imports. The president views tariff revenues as a way to help offset the budget deficit increases tied to his recent income tax cuts and generate more domestic factory jobs. While Trump has effectively wielded tariffs as a cudgel to reset the terms of trade, the economic impact is uncertain as most economists expect a slowdown in US growth and greater inflationary pressures as some of the costs of the taxes are passed along to domestic businesses and consumers. ADVERTISEMENT There's also the possibility of more tariffs coming on trade partners with Russia as well as on pharmaceutical drugs and computer chips. Kevin Hassett, director of the White House National Economic Council, said Trump and US Trade Representative Jamieson Greer would announce the Russia-related tariff rates on India at a later date. Tariffs face European pushback The morning's headlines in 90 seconds, including tsunami threat remains for NZ and quake sparks Russian volcanic eruption, plus the pop star and the politician spotted having dinner. (Source: 1News) Trump's approach of putting a 15% tariff on America's long-standing allies in the EU is also generating pushback, possibly causing European partners as well as Canada to seek alternatives to US leadership on the world stage. French President Emmanuel Macron said today in the aftermath of the trade framework that Europe 'does not see itself sufficiently' as a global power, saying in a cabinet meeting that negotiations with the US will continue as the agreement gets formalised. ADVERTISEMENT 'To be free, you have to be feared,' Macron said. 'We have not been feared enough. There is a greater urgency than ever to accelerate the European agenda for sovereignty and competitiveness.' Seeking a deeper partnership with India Washington has long sought to develop a deeper partnership with New Delhi, which is seen as a bulwark against China. Indian Prime Minister Narendra Modi has established a good working relationship with Trump, and the two leaders are likely to further boost cooperation between their countries. When Trump in February met with Modi, the US president said that India would start buying American oil and natural gas. The new tariffs on India could complicate its goal of doubling bilateral trade with the US to $500 billion (NZ$847.3 billion) by 2030. The two countries have had five rounds of negotiations for a bilateral trade agreement. While US has been seeking greater market access and zero tariff on almost all its exports, India has expressed reservations on throwing open sectors such as agriculture and dairy, which employ a bulk of the country's population for livelihood, Indian officials said. The Census Bureau reported that the US ran a $45.8 billion (NZ$77.6 billion) trade imbalance in goods with India last year, meaning it imported more than it exported. At a population exceeding 1.4 billion people, India is the world's largest country and a possible geopolitical counterbalance to China. India and Russia have close relations, and New Delhi has not supported Western sanctions on Moscow over its war in Ukraine. The new tariffs could put India at a disadvantage in the US market relative to Vietnam, Bangladesh and, possibly, China, said Ajay Sahai, director general of the Federation of Indian Export Organisations. 'We are back to square one as Trump hasn't spelled out what the penalties would be in addition to the tariff,' Sahai said. 'The demand for Indian goods is bound to be hit.'
Otago Daily Times
6 hours ago
- Otago Daily Times
Dozens of countries cop steep tariffs
US President Donald Trump has slapped steep tariffs on exports from dozens of trading partners including Canada, Brazil, India and Taiwan, pressing ahead with his plans to reorder the global economy. NZ slapped with 15% US tariff Trump set rates including a 35% duty on many goods from Canada, 50% for Brazil, 25% for India, 20% for Taiwan and 39% for Switzerland, according to a presidential executive order. The order listed higher import duty rates of 10% to 41% starting in seven days for 69 trading partners as the 12.01am (EDT) deadline on Friday approached. Some of them had reached tariff-reducing deals; others had no opportunity to negotiate with his administration. Trump included an exception for some goods shipped within the coming week. Goods from all other countries not listed would be subject to a 10% US import tax. Trump had previously said that rate might be higher. The administration also teased that more trade deals were in the pipeline as it seeks to close trade deficits and boost domestic factories. Facing a Friday deadline of his making, the Republican president has tapped emergency powers, pressured foreign leaders, and pressed ahead with trade policies that sparked a market sell-off when they were first announced in April. This time, markets had a more muted reaction. Stocks and equity futures fell modestly in Friday morning trading in Asia. Trump's order said that some trading partners, "despite having engaged in negotiations, have offered terms that, in my judgment, do not sufficiently address imbalances in our trading relationship or have failed to align sufficiently with the United States on economic and national-security matters." Other details are still to come, including on the "rules of origin" that will determine what products might face even higher tariffs. Trump also said "we have made a few deals today that are excellent deals for the country," and a U.S. official later told reporters that they were still to be announced. CANADA, MEXICO Trump issued a separate order for Canada that raises the rate on Canadian goods subject to fentanyl-related tariffs to 35%, from 25% previously, saying Canada had "failed to cooperate" in curbing illicit narcotics flows into the United States. The higher tariffs on Canadian goods contrasted sharply with Trump's decision to grant Mexico a 90-day reprieve from higher tariffs of 30% on many goods to provide more time to negotiate a broader trade pact. Trump complained to reporters earlier that Canada had "been very poorly led." Canadian Prime Minister Mark Carney said he was disappointed by Trump's decision, and vowed to take action to protect Canadian jobs and diversify the country's export markets. "While we will continue to negotiate with the United States on our trading relationship, the Canadian government is laser focused on what we can control: building Canada strong," he said in a post on X. The extension for Mexico avoids a 30% tariff on most Mexican non-automotive and non-metal goods compliant with the US-Mexico-Canada Agreement on trade and came after a Thursday morning call between Trump and Mexican President Claudia Sheinbaum. "We avoided the tariff increase announced for tomorrow," Sheinbaum wrote on X, adding that the Trump call was "very good." About 85% of US imports from Mexico comply with the rules of origin outlined in the USMCA, shielding them from 25% tariffs related to fentanyl, according to Mexico's economy ministry. Trump said the US would continue to levy a 50% tariff on Mexican steel, aluminium and copper and a 25% tariff on Mexican autos and on non-USMCA-compliant goods subject to tariffs related to the US fentanyl crisis. "Additionally, Mexico has agreed to immediately terminate its Non Tariff Trade Barriers, of which there were many," Trump said in a Truth Social post, without providing details. INDIA DISCORD Goods from India appeared to be headed for a 25% tariff after talks bogged down over access to India's agriculture sector, drawing a higher-rate threat from Trump that also included an unspecified penalty for India's purchases of Russian oil. Although negotiations with India were continuing, New Delhi vowed to protect the country's labour-intensive farm sector, and the threat of higher rates from Trump triggered outrage from the opposition party and a slump in the rupee. Trump's rollout of higher import taxes comes amid more evidence they have begun driving up consumer goods prices. Commerce Department data released Thursday showed prices for home furnishings and durable household equipment jumped 1.3% in June, the biggest gain since March 2022. Recreational goods and vehicles prices shot up 0.9%, the most since February 2024. Prices for clothing and footwear rose 0.4%. TOUGH QUESTIONS FROM JUDGES Trump hit Brazil's exports on Wednesday with a steep 50% tariff as he escalated his fight with Latin America's largest economy over its prosecution of his friend and former President Jair Bolsonaro, but softened the blow by excluding sectors such as aircraft, energy and orange juice from heavier levies. The run-up to Trump's tariff deadline was unfolding as federal appeals court judges sharply questioned Trump's use of a sweeping emergency powers law to justify his sweeping tariffs of up to 50% on nearly all trading partners. Trump invoked the 1977 International Emergency Economic Powers Act to declare an emergency over the growing US trade deficit and impose his "reciprocal" tariffs and a separate fentanyl emergency. The Court of International Trade ruled in May that the actions exceeded his executive authority, and questions from judges during oral arguments before the US Appeals Court for the Federal Circuit in Washington indicated further scepticism. Meanwhile, China is facing an August 12 deadline to reach a durable tariff agreement with Trump's administration, after Beijing and Washington reached preliminary deals in May and June to end escalating tit-for-tat tariffs and a cut-off of rare earth minerals. A US official told reporters that they are making progress toward a deal.
