Trump tariffs worse for businesses than Covid-19 pandemic
US President Donald Trump delivers remarks on reciprocal tariffs during an event in the Rose Garden at the White House in Washington, DC, on April 2, 2025.
Photo:
AFP / Brendan Smialowski
Two-thirds of businesses think United States tariffs would have a more severe global impact than Covid-19 and the Global Financial Crisis over the next 12 months, with nearly 80 percent of exporters most concerned, a survey indicates.
However, the Talbot Mills Research survey of more than 300 business leaders commissioned by ASB Bank indicates a quarter saw some opportunity in the tariffs.
"The current market volatility and geopolitical tension may be our 'new normal', but we've been in positions of global uncertainty before and the research shows Kiwi businesses are already thinking about actions they can take to make their business more resilient and generate returns," ASB's executive general manager business banking Rebecca James said.
"It's clear businesses view any proposed US tariffs as troubling, but it's pleasing that nearly a quarter of respondents see opportunity in tariffs too. New Zealand has a reputation on the world stage for ingenuity and a can-do attitude, and we want businesses to know there are things they can do to future-proof and manage risks in turbulent times."
Donald Trump holds a chart with each country's tariffs, although some have been paused or changed since the announcement on 2 April, 2025.
Photo:
AFP / Brendan Smialowski
President Donald Trump's America First trade policy is aimed at protecting US industries and addressing the trade deficit through tariffs.
While tariffs were set at 10 percent for most countries, including New Zealand, there were some notable outliers including Chinese origin goods.
Negotiations between China and the US were scheduled to begin this week, while the 10 percent baseline was paused for a 90-day period.
Given the uncertainty, James said businesses were shifting their focus to closer to home.
"The research shows a pendulum swing when it comes to trading partners, with businesses redirecting their attention to our close neighbours.
"Location seems to be king, with our customers prioritising relationships much closer to home.
"We're also seeing exporters maintaining high standards and doubling down on premium products to give us an edge on the global stage, even where it costs more for consumers."
She said banks were seen as a critical support function for 39 percent of respondents, specifically for working capital support (31 percent), risk advice (26 percent) and trade finance (24 percent).
"ASB has provided $4.6 billion to Kiwi businesses over the past five years including considerable support to companies looking to expand and navigate opportunities abroad.
"We encourage companies doing business overseas to speak with their banker and engage with a trade specialist to ensure your business is in the strongest position."
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