New Zealand Condemns 'Blunt and Late' 15% US Tariff on Exports

Prime Minister Christopher Luxon has described the recent decision by US President Donald Trump to impose a 15% tariff on New Zealand exports as 'blunt and late', expressing disappointment over the move. Speaking on Morning Report, Luxon emphasized that the higher-than-expected rate was not what New Zealand wanted, and that the government had already engaged in 'constructive' discussions with the US prior to the announcement.

Despite the negative outcome, the government has maintained a measured response, stating that New Zealand exporters are 'nimble and agile' and that there remains strong global demand for New Zealand’s products and services. Luxon reiterated that the government would continue to 'register its disappointment' and that it has been working on this issue since April.

However, the opposition Labour Party has been more critical, with Trade Spokesperson Damien O'Connor calling the 15% tariff a 'slap in the face' for New Zealand exporters. O'Connor argued that the decision puts New Zealand at a disadvantage compared to competitors like Australia, Argentina, and Uruguay, all of whom have lower tariff rates.

Kate Acland, Chairperson of Beef and Lamb New Zealand, echoed these concerns, noting that the higher tariff could result in an additional $300 million hit to the industry if costs are not passed on to consumers. While Acland acknowledged that New Zealand is 'one of the good guys' in trade negotiations, she suggested that the country may not have had much leverage in the talks.

Felicity Roxburgh, Director of the International Business Forum, added that while exporters have done well in absorbing costs so far, the long-term impact of the 15% tariff remains uncertain. She welcomed the government's decision to send top diplomat Vangelis Vitalis to Washington to advocate for New Zealand's interests, but warned that market adjustments would take time.

Meanwhile, Trade Minister Todd McClay has emphasized that the government will continue to push back on the tariff, with plans for a visit to the US in the coming days. The move has sparked renewed calls for diplomatic engagement, as New Zealand seeks to maintain its position in the global trade landscape.

As the US continues to impose tariffs under Trump's trade policies, the impact on New Zealand's export sector remains a key concern. With global demand for protein, particularly beef, on the rise, the challenge for New Zealand is to navigate these trade barriers while ensuring the competitiveness of its exports.