On the campaign trail, he promised anywhere from 10% to 20% tariffs on imports.
Last month, in an interview at the Economic Club of Chicago, Trump said “To me, the most beautiful word in the dictionary is tariff” and “it needs a public relations firm”.
It’s something that has pricked the ears of nations worldwide as well as New Zealand, given the US is one of our biggest trading partners.
Figures from StatsNZ show that in May, a rise in exports was led by an increase in exports to the US – which reached a billion dollars for the first time.
The US is our second biggest export market, with an annual value of $8.8 billion for the year ending May 2024, behind only China at $17.9bn.
In the year ended June, NZ exported nearly $2.5 billion of meat and edible offal to the US – which included nearly $1.6bn of frozen beef.
Beef and Lamb NZ chair, Kate Acland told The Front Page that when it comes to tariffs, we won’t know what it actually means in practice until next year.
“What we do know is that we’ve got really strong relationships with the US both across the sector but also with customers. And there’s a really strong demand for our products.
“It’s very much a wait-and-see approach. Beef and Lamb has a US Washington DC-based trade relationship manager. So, through him we’re able to keep a really close eye on those issues as they arise,” she said.
NZUS Council executive director Fiona Cooper agreed and told The Front Page she’d caution speculating about the tariff policy until it’s more fully-formed.
“The devil will be in the details. It’s clear there will be implications for New Zealand and it’s something that we’re really focused on.
“New Zealand’s trade policy starts from quite a different angle. New Zealand has spent many years trying to remove tariffs to make world trade more efficient and cheaper.
“We’re in the same boat as all of the US trading partners. This is something that’s going to affect everybody and it’s going to be top of mind for all the countries that partner with the US.
“I’m sure that New Zealand companies are thinking about what the possible impacts could be. But, none of us can make an informed judgment until we see the detail,” she said.
Meat Industry Association chief executive Sirma Karapeeva said the US has overtaken China as our number one market for five months in a row.
“There is a significant risk posed by a 10 to 20% tariff on all imports. It will make NZ products more expensive, and ultimately the consumer will be worse off as importers seek to pass on these cost increases.
“There is also the risk of anti-trade/protectionism lobbying gaining traction,” he said.
Listen to the full episode to hear more about New Zealand’s relationship with the US.
The Front Page is a daily news podcast from the New Zealand Herald, available to listen to every weekday from 5am. The podcast is presented by Chelsea Daniels, an Auckland-based journalist with a background in world news and crime/justice reporting who joined NZME in 2016.
You can follow the podcast at iHeartRadio, Apple Podcasts, Spotify, or wherever you get your podcasts.
