Latest news with #America-centric
Scoop
3 days ago
- Business
- Scoop
Trump Tariffs Critique Sparks Councillor To Jump To US President's Defence
If Donald Trump ever found himself on the West Coast, he could count on at least one fan to roll out the regional council welcome mat. Goldmining councillor Allan Birchfield sprang to the defence of the US President at this month's corporate services meeting, after the council's treasury advisor critiqued Trump's tariff policies and their chaotic impact on financial markets. Bancorp corporate manager Miles O'Connor was presenting the firm's quarterly report on the West Coast Regional Council's (WCRC) $14 million investment fund, and the global trends likely to affect interest rates - all backed up with graphs, facts and figures. The US was moving away from acting in the world's interest towards an America-centric approach, he noted. Traditionally 60 percent of the world's capital had gone to the US because it was seen as a safe haven in uncertain times, O'Connor said. But the volatility in the equity and bond markets that followed Trump's 'Liberation Day' tariffs had not been seen since the stock market crash of 1987, and had caused a flight of capital out of the US and into European, Asian, and Japanese markets. Predicting profits and interest rates had become so difficult that some banks and major companies had given up forecasting completely, O'Connor said. The US president had also challenged the independence of the Federal Reserve by calling on its governor to cut interest rates. "Now that's just not done normally by political leaders. You don't see our Reserve Bank being told by the Prime Minister you must drop rates. "It's inherent in monetary policy that the central bank is independent of political influence." Trump had since reduced the 145 percent on Chinese goods to 30 percent, and the markets had settled down somewhat, but some tariffs would be permanent and New Zealand exports would be affected, O'Connor said. A recent Federal Reserve survey showed the tariffs were not working as hoped in the US domestic market: businesses were passing on price hikes to customers which was inflationary and hardly any overseas companies were relocating to the US. "My view is (Trump) probably won't go back to what he was doing; he probably didn't expect the reaction he got." Two Trump policies that did make sense were US defence spending and ending "unfettered" immigration, O'Connor said. "I'm not totally opposed to what he (Trump) does - some of the other policies I am slightly dubious about." Councillor Birchfield, whose goldmine office sports a large photo of Trump, seized his opening. "I'm pleased you're starting to give Donald a bit of credit - you go on with the usual rhetoric, anti-Donald Trump. "You say the US only does stuff in its own interest - you need to think about the US Navy - it guarantees freedom of trade - even for China [and] it's a huge cost on the US taxpayer." The US had recently "sorted out" the (Yemen rebel group) Houthis who had been disrupting world trade, Birchfield said. "Nobody else is gonna do that so you do need to start recognising the value of the US. And I see you saying it could impact New Zealand exports. "You don't really know. Lift your game," Birchfield instructed the Bancorp manager. O'Connor agreed the US did protect world trade. "But [the tariffs] are having an effect on our exports - we know that from some of our clients who've had orders cancelled." Birchfield continued, saying Trump had a huge problem of debt and a trade imbalance with China. "There's gonna be a bit of a shake down but at the end of the day he had to sort that out." O'Connor said the reason for the trade imbalance was that the US just could not match China's manufacturing capabilities. Council chairperson Peter Haddock put an end to the exchange, saying "We've had a shot across the bows by the US". "We have to recognise the volatility in the world... the best we can get out of it is lower interest rates." O'Connor said the official cash rate was likely to drop to three percent this year or possibly lower by November. The council had longer term cover in place for its investments and would not need to make any changes until next year, he said.
Otago Daily Times
4 days ago
- Business
- Otago Daily Times
Councillor springs to defence of Trump
If Donald Trump ever found himself on the West Coast, he could count on at least one fan to roll out the regional council welcome mat. Goldmining councillor Allan Birchfield sprang to the defence of the US President at this month's corporate services meeting, after the council's treasury adviser critiqued Mr Trump's tariff policies and their chaotic impact on financial markets. Bancorp corporate manager Miles O'Connor was presenting the firm's quarterly report on the West Coast Regional Council's (WCRC) $14-million investment fund, and the global trends likely to affect interest rates — all backed up with graphs, facts and figures. The US was moving away from acting in the world's interest towards an America-centric approach, he noted. Traditionally 60% of the world's capital had gone to the US because it was seen as a safe haven in uncertain times, Mr O'Connor said. Predicting profits and interest rates had become so difficult that some banks and major companies had given up forecasting completely, Mr O'Connor said. The US president had also challenged the independence of the Federal Reserve by calling on its governor to cut interest rates. "Now that's just not done normally by political leaders. You don't see our Reserve Bank being told by the prime minister you must drop rates. It's inherent in monetary policy that the central bank is independent of political influence." Mr Trump had since reduced the 145% tarrifs on Chinese goods to 30%, and the markets had settled down somewhat, but some tariffs would be permanent and New Zealand exports would be affected, Mr O'Connor said. "My view is (Mr Trump) probably won't go back to what he was doing; he probably didn't expect the reaction he got." Two Trump policies that did make sense were US defence spending and ending "unfettered" immigration, Mr O'Connor said. "I'm not totally opposed to what he (Mr Trump) does — some of the other policies I am slightly dubious about." Cr Birchfield — whose goldmine office sports a large photo of Mr Trump, seized his opening. "I'm pleased you're starting to give Donald a bit of credit ... you go on with the usual rhetoric, anti-Donald Trump. "You say the US only does stuff in its own interest — you need to think about the US Navy — it guarantees freedom of trade — even for China [and] it's a huge cost on the US taxpayer." Mr O'Connor agreed the US does protect world trade. "But [the tariffs] are having an effect on our exports — we know that from some of our clients who've had orders cancelled." Mr Birchfield continued, saying Trump has got huge problem of debt and a trade imbalance with China. Mr O'Connor said the reason for the trade imbalance was that the US just could not match China's manufacturing capabilities. Council chairman Peter Haddock put an end to the exchange, saying "we've had a shot across the bows by the US". "We have to recognise the volatility in the world ... the best we can get out of it is lower interest rates." ■LDR is local body journalism co-funded by RNZ and NZ On Air.
