NZ Hit With 15% Trump Trade Tariff, Trade Minister Says He Will Push Back
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
NZ Herald
24 minutes ago
- NZ Herald
Letters: Despite Donald Trump's tariffs, we continue to produce world-class meat, dairy and wine
So, in summary and even factoring in US state sales taxes, in totality, New Zealand is only marginally disadvantaged. Further mitigating factors both in favour of the American consumer and the New Zealand exporter is the ongoing strength of the US dollar and Donald Trump's recent big, beautiful tax bill, which will pass significant tax relief and buying power into the hands of millions of American consumers. Also front of mind should be that other countries and direct New Zealand competitors are facing similar, if not greater, tariff increases than New Zealand. Given we continue to produce world-class meat, dairy and wine products, it's unlikely, after a period of adjustment, that price increases at the retail level will have any meaningful impact on American consumers. Bruce Eliott, St Heliers. Voting changes People are criticising the Government for closing voting enrolments two weeks before the election. If you don't want to vote, that is fine. However, if you do, but can't be bothered to put in a small amount of effort to enrol over two weeks before an election, the problem isn't the system, it's you. If you want to vote, make an effort. Mark Young, Ōrewa. Electoral requirements If it is a legal requirement to be enrolled on the electoral roll, as stated by the Government on national television Q&A programme yesterday, why are all those on a benefit or Superannuation or in public services jobs not being checked by either employers or Winz? Who is responsible for checking that all New Zealanders are enrolled and are therefore not in breach of the law? Or does this Government not care about the 'dropkicks' or those who have been removed from the Māori roll? What happens to those who turn 18 on or near polling day? If the enrolment time is shortened, how will NZ Post guarantee that all New Zealanders are enrolled in time, and also the many thousands of Kiwi who have moved to Australia this past year who are still New Zealand citizens? Where is the democratic right for all New Zealanders? It behoves every Kiwi eligible to vote and all parliamentary parties to check the electoral roll in 2026 to make a concerted effort to gather those who are in breach of the law. Marie Kaire, Whangārei. Credit card fees So, the Government is banning credit card fees, whoop de do. Not all retailers charged extra anyway and the ones that did will recover them in some other covert way instead. A waste of Government time and energy all round. A.J. Petersen, Kawerau. Lions v Australia In a dead rubber, Australia won one test against the British and Irish Lions which, in spite of rugby's prevailing conflicting laws, held a passing interest. The game again was an eight-man-a-side wrestling contest with hardly any flowing seven-man backline plays. The tries scored were due only to individual opportunism, rather than teamwork. Once again, rugby was ... the loser. Larry Mitchell, Rothesay Bay. Jami-Lee Ross' political return Former National MP Jami-Lee Ross has said he is aiming for a political comeback, and will run for a seat on the Howick local board in the Flat Bush subdivision. No doubt he has weighed up the pros and cons of this move, but given the way the final chapters of his previous time in politics played out in the media, I'd suggest it would probably be best to give it a miss. He would open himself up for scrutiny, old controversies will be brought up, and his new venture, running an escort agency, will no doubt be 'grist for the mill' for his opponents. The message in Kenny Rogers' song The Gambler says it best: 'You got to know when to hold 'em, know when to fold 'em, know when to walk away and know when to run...' Lorraine Kidd, Warkworth.
1News
10 hours ago
- 1News
Thousands march across Sydney Harbour Bridge in Gaza protest
One of Australia's most well known landmarks has become the centrepoint of public resistance to Israel's military action in Gaza, with tens of thousands of protesters spilling onto the Sydney Harbour Bridge. On a wet and windy Sunday, hundreds of Palestinian flags could be seen fluttering in the breeze as protesters marched to spotlight suffering in Gaza. Rally organiser Palestine Action Group intended to draw attention to what the United Nations has described as "worsening famine conditions" in Gaza. Organisers expected tens of thousands to march from the Sydney CBD across the bridge to North Sydney, although numbers may have affected by heavy rain. Police yesterday sought an order to prohibit the protest but Supreme Court Justice Belinda Rigg rejected the application, meaning protesters will have immunity and protections from offences such as blocking or obstructing traffic or pedestrians. ADVERTISEMENT A large police presence was mobilised to ensure safety, with the bridge closed to motorists for most of today. "We ask that all the participants who are coming into the city to take part in this public assembly, listen to police, be respectful, understand that there will be large crowds," acting deputy commissioner Peter McKenna said. "We will have police right along the route and we'll be making sure this is done as safely and peacefully as possible." Police warned they would take swift action against anyone who sought to hijack the peaceful protest. Several Labor MPs defied state premier Chris Minns, joining the march alongside multiple Greens and independent colleagues. In support of the demonstration, the Jewish Council of Australia described the occasion as "momentous". ADVERTISEMENT "We stand with and join those marching across the bridge and call for immediate action to stop the Gaza genocide," executive officer Max Kaiser said in a statement. Executive Council of Australian Jewry CEO Alex Ryvchin said there was "a lot of dismay in the community and wider society that a single judge has overruled a decision of the police and the elected government made in the interests of public safety". Similar demonstrations were planned on Sunday in Melbourne and Adelaide. More than 60,000 Palestinians have been killed in the war in Gaza, according to local health authorities, while the United Nations says dozens of people have died in recent weeks due to starvation. Israel's military campaign began after militant group Hamas attacked Israel on October 7, 2023, killing 1200 people and taking more than 251 hostages.
Otago Daily Times
11 hours ago
- Otago Daily Times
Thousands pour onto iconic Sydney bridge for Gaza
One of Australia's most iconic landmarks has become the centrepoint of public resistance to Israel's military action in Gaza, with tens of thousands of protesters spilling onto the Sydney Harbour Bridge. On a wet and windy Sunday, hundreds of Palestinian flags could be seen fluttering in the breeze as protesters marched to spotlight suffering in Gaza. Rally organiser Palestine Action Group intends to draw attention to what the United Nations has described as worsening famine conditions in Gaza, as police flagged concerns of crowd crush. Police sought an order to prohibit the protest but Supreme Court Justice Belinda Rigg rejected the application on Saturday. With increasing concerns for public safety, the force has since permitted protesters to walk back southbound across the bridge to the Sydney CBD after the march was initially proposed to end in North Sydney's Bradfield Park. The bridge will remain closed to motorists for most of Sunday and the metro is out of commission with scheduled repairs. Several Labor MPs including former NSW Labor premier and former federal foreign minister Bob Carr joined the march in defiance of Premier Chris Minns alongside multiple Greens and independent colleagues. The premier previously warned the city would "descend into chaos" if the protest went ahead. In a statement, Mr Carr said Australians "want the Netanyahu government's humanitarian blockade to stop, the starvation and the killing to end". WikiLeaks founder Julian Assange joined Mr Carr at the rally. First time protesters and friends Ian Robertson, 74, and Greg Mullins, 66, said they hoped their attendance could make a difference. "The world's gone mad," Mr Mullins told AAP. "I came today because I don't want my kids telling me what were you doing when this mass murder and genocide was going on," Mr Robertson added. "It's horrific and awful, we can't bear watching it." Acting Police Assistant Commissioner Adam Johnson earlier warned police would take swift action against anyone who sought to hijack the peaceful protest. "That's our message all the time, whether it's a public assembly or not. "I'm talking about anyone, I'm not talking about the actual protesters specifically, but anyone, that people are expected to obey the law." Mr Johnson also raised safety concerns, citing the rainy conditions and the number of demonstrators. "Crowd crush is a real thing ... but in this case, the risk is the numbers are unknown," he said. An estimated 25,000 are believed to be on the ground in Sydney, NSW Police told AAP. Federal Opposition leader Sussan Ley questioned the shutting down of a "critical piece of infrastructure" in Sydney. Formerly a pro-Palestinian MP in parliament before shifting her position, Ms Ley took aim at the protest organisers and suggested the rally be moved to another location. "I respect the right of free speech and protest, but this is taking it to another level ... the protest could happen elsewhere," Ms Ley told Sky News. Labor backbencher Ed Husic, who has been more outspoken on ending the war on Gaza, emphasised unity. "What we are seeing is that Australians are deeply affected by the images they are seeing out of Gaza," he told ABC TV. "They want to send a strong message through peaceful protests to governments, both here and abroad, that the killing has got to stop, the starvation has got to end." Several thousand protesters also marched through Melbourne to block a major CBD thoroughfare with many in the crowd banging pots and pans in a nod to mounting concerns about mass starvation in Gaza. More than 60,000 Palestinians have been killed in the war in Gaza, according to local health authorities, while the United Nations says dozens of people have died in recent weeks due to starvation. Israel's military campaign began after militant group Hamas attacked Israel on October 7, 2023, killing 1200 people and taking more than 251 hostages.
