Trade Minister Todd McClay will soon fly to the US to discuss the new tariff rate. Photo / Marty Melville
Trade Minister Todd McClay will soon fly to the US to discuss the new tariff rate. Photo / Marty Melville
Trade Minister Todd McClay will soon fly to the United States to plead New Zealand’s case after President Donald Trump’s 15% tariff hike.
Prime Minister Christopher Luxon confirmed the country’s top trade diplomat would travel to the US imminently while McClay had been invited by his US trade counterpartto visit in the coming weeks to discuss Trump’s surprise increase to New Zealand’s base tariff rate.
It comes as Luxon uses his speech at the annual National Party conference in Christchurch to announce a new charge on foreigners visiting popular tourist sites and reveal the first fast-track consent had been approved for a Port of Auckland upgrade.
Speaking to the media at the conference, Luxon said Trump’s announcement to impose a 15% tariff base rate had been a “blunt and rather late decision” based on New Zealand’s trade surplus with the US, meaning New Zealand sold more goods to the US than it bought.
He put forward New Zealand’s position that tariffs were harmful to global trade.
The top trade diplomat, New Zealand trade deputy secretary Vangelis Vitalis, would fly to the US tomorrow morning.
Trade Minister Todd McClay speaking at the National conference in Christchurch. Photo / Adam Pearse
McClay, speaking to the roughly 500-person crowd in Christchurch, said he had yesterday requested an “urgent” conversation with his US trade counterpart Jamieson Greer.
He said the pair spoke this morning, during which he told Greer New Zealand believed 15% was “unreasonable” and would harm some Kiwi exporters.
Other nations, including Australia and the United Kingdom, had only been given 10%, given their trade deficit with the US.
McClay said Greer had described the announcement as a clear decision from Trump and reiterated the position was informed by the US’ trade deficit with NZ.
McClay expected he would get to the US in the next few weeks.
Earlier in the day, Luxon used his conference address to announce foreign tourists would face a $20 to $40 charge when they visited some of the country’s most popular Department of Conservation sites and walking tracks.
It was a feature of a speech that encouraged members to “keep working together” amid nationwide struggles with the cost of living.
The fee would apply initially to Cathedral Cove/Te Whanganui-a-Hei, the Tongariro Crossing, Milford Sound, and Aoraki Mt Cook, where foreigners often make up 80% of all visitors, according to Conservation Minister Tama Potaka.
The Government would assess the establishment of the fee at the four locations before deciding whether to expand it to other sites.
“Tourists make a massive contribution to our economy, and no one wants that to change. But I have heard many times from friends visiting from overseas their shock that they can visit some of the most beautiful places in the world for free,” Potaka said.
“It’s only fair that at these special locations, foreign visitors make an additional contribution of between $20 and $40 per person.”
Prime Minister Christopher Luxon speaks to media alongside Conservation Minister Tama Potaka and Tourism Minister Louise Upston at the National conference in Christchurch. Photo / Adam Pearse. 2/8/25
Potaka said it would result in up to $62 million per year in revenue, which would be “directly reinvested” into DoC sites.
Also announced was reform to the Conservation Act to address what Luxon described as a “totally broken” concessions regime.
“Outdated rules mean we’ve got examples of modern E-bike users being turned away from potential touring opportunities because they have to be considered as proper vehicles,” he said.
“And tourism on the Routeburn is being held up because the trail crosses artificial boundaries, with different rules and different limits.”
Luxon noted DoC had been spending “millions” every year fighting appeals, saying the agency should be focused on protecting the environment.
He also revealed the first fast-track consent had been approved, allowing upgrades at the Port of Auckland to begin construction “as soon as possible”.
Adam Pearse is the Deputy Political Editor and part of the NZ Herald’s Press Gallery team based at Parliament in Wellington. He has worked for NZME since 2018, reporting for the Northern Advocate in Whangārei and the Herald in Auckland.
