The New Zealand sharemarket fell sharply in the opening minutes of trade following Trump’s announcement.
President Donald Trump this morning announced sweeping tariffs on more than 125 countries, including 10% on imports coming from New Zealand.
Other countries were less fortunate, with huge new tariffs of 34% being slapped on imports from China and 20% on imports from the European Union – two of the main US trade partners.
A baseline tariff of 10% would be imposed on imports from a wide range of other countries, but some would come under far harsher duties, also including 24% on Japan and 26% on India.
Trade Minister Todd McClay said New Zealand would not be looking to apply retaliatory tariffs.
“That would put up prices on consumers and that would be inflationary,” McClay said.
He said the Government felt “relieved” by the tariffs, but tariffs were still bad for trade.
“We are no worse off than anybody else, in some cases other countries face higher tariff rates,” McClay said.
Trump’s announcement included reciprocal tariffs of approximately half of what other countries charge the US on imports.
He also imposed 25% tariffs on all foreign-made cars.
“They’re ripping us off,” Trump said of other countries imposing tariffs on America.
Kiwibank chief economist Jarrod Kerr said: “It could have been worse… but it’s still bad enough.
“New Zealand may be getting off relatively lightly, with the blanket 10% tariff. But a heavier hand was dealt on China and other Southeast Asian countries.
“It has left us contemplating how much all these tariffs will weigh on global growth. And it’s still hard to quantify, but negative nonetheless.”
Act leader David Seymour said the tariff news was concerning.
“…the margins are slim in parts of that market, through competition, and 10% will make a difference.”
“We’re looking very carefully at the development.”
He said the Government won’t be rushing or antagonised and “will come up with a considered respectful response that continues a strong relationship with the United States as we work through these issues.”
Labour leader Chris Hipkins said the tariffs would not be great for New Zealand overall.
“We can hand on heart say that these [tariffs] aren’t justified as in a retaliatory sense.”
New Zealand’s meat industry representatives were disappointed by the tariff decision.
Sirma Karapeeva, chief executive of the Meat Industry Association (MIA), said they needed to take the time to “fully assess the implications of any disruption to trade flows”.
“New Zealand red meat exporters have undertaken significant planning to mitigate potential disruptions, maintain market positions, and navigate shifts in global trade patterns,” Karapeeva said.
Alan Thomson, chief executive of Beef + Lamb New Zealand (B+LNZ), said it is unfortunate the US is imposing tariffs on New Zealand exports.
“It is too early to tell what the ultimate impact of this will be on farm-gate prices. What is positive is that we have strong demand globally at present for red meat.”
The US was the second-largest export destination for New Zealand goods in 2024, with a value of $9 billion, or 12% of our total exports by value, according to Stats NZ.
Albanese said: “The administration’s tariffs have no basis in logic and they go against the basis of our two nation’s partnership.
“This is not the act of a friend.”
Cameron Smith is an Auckland-based journalist with the Herald business team. He joined the Herald in 2015 and has covered business and sports. He reports on topics such as retail, small business, the workplace and macroeconomics.
