Donald Trump campaigned on implementing import tariffs on overseas exporters while running to become President.
Donald Trump campaigned on implementing import tariffs on overseas exporters while running to become President.
Hawke’s Bay Regional Economic Development Agency’s Lucy Laitinen warns the region would be more exposed than others in NZ to US tariffs.
But Hawke’s Bay fruit producer Paul Paynter doubts Donald Trump will impose significant tariffs on appleexports.
Paynter says the US market is already struggling, with apple growers facing oversupply and low prices.
A Hawke’s Bay fruit producer says he doesn’t expect Donald Trump to keep his word and launch big tariffs on apple exports from the region.
And even if the new US President does, it won’t cripple the $1 billion-a-year industry in Hawke’s Bay as selling to America isalready a dire experience in 2024, Yummy Fruit CEO Paul Paynter says.
During his re-election campaign, Trump proposed a 10% tariff on all US imports and a 60% levy on Chinese-made products. Trump also threatened to impose a 25% tariff on all imports from Mexico.
The Yummy Fruit Company CEO Paul Paynter doesn't believe Donald Trump will impose import tariffs he campaigned on. Photo / Warren Buckland
However, general manager of The Yummy Fruity Company, Paul Paynter, doesn’t believe America’s new President will make a lot of difference to Hawke’s Bay exporters, especially apple growers.
Paynter said many large apple growers and producers in the US had bought up at the tail-end of Covid and had planted more apple trees on all the land they could find, quickly creating an oversupply issue.
“Right now, they are losing US$5000 an acre,” Paynter said.
“The US market is a disaster and will be for some years while they play ‘last man standing’. Premium varieties like Honeycrisp have gone from $3.99/lb to $1.99/lb in one year.
“Once we shipped about 100 containers to the US, and this year it was four. There is no money to be had there for a while, so it’s not a problem.”
But Paynter doesn’t believe that a Trump presidency will mean we will see the extreme tariff measures he’s threatening, saying there is no direct link between Trump’s “bombast and policy”.
“His strategy is to talk like an unhinged madman and then do a deal while you’re cowering. It’s just his playbook and I can’t believe everyone takes him literally.
“Mostly his previous presidential term was characterised by moderate conservatism. A trade war with China being the exception, his track record economically is quite good.
“I think his target is China on tech and electric cars mostly. His policy wonks will point out that they are short of beef and dairy and we’re a well-regarded ally, so I think it’s likely we’ll dodge major tariffs. We’ll see.”
Chief executive of the Hawke’s Bay Regional Economic Development Agency Lucy Laitinen said she expected to see some impact on the Hawke’s Bay region from Trump’s presidency, because of how dependent many industries were on exports.
“In 2023, exports amounted to 31% of our region’s GDP, which is significantly higher than the national average.”
Laitinen said the incoming US administration had strongly advocated for increasing tariffs on a wide range of goods that the region exports, including beef, fruit, wine, and manufactured goods.
“These tariffs are of real concern to the Hawke’s Bay Regional Economic Development Agency as the US is Hawke’s Bay’s second largest export market overall and our fastest growing.
“At the simplest level, the introduction of tariffs or their increase would likely drive up the price of our exported goods in the US, making them less competitive.
“This could reduce export volumes overall, which of course would lead to lower economic growth due to the negative effect not only on exporters but related industries such as services, logistics, and transportation.”
Jack Riddell is a multimedia journalist with Hawke’s Bay Today and has spent the last 15 years working in radio and media in Auckland, London, Berlin, and Napier. He reports on all stories relevant to residents of the region, along with pieces on art, music, and culture.
