Trade Minister Todd McClay. (File photo)
Photo: RNZ / Mark Papalii
As the world grapples with US President Donald Trump’s latest move raising global duty on imports into the United States to 15 percent, Trade Minister Todd McClay says how it will impact New Zealand businesses remains to be seen.
Over the weekend, Trump said on his Truth Social platform that after a thorough review of the Supreme Court’s ruling that emergency tariffs were illegal, the administration was hiking the import levies “to the fully allowed, and legally tested, 15 percent level.”
But what will this mean for New Zealand businesses?
Trade Minister Todd McClay told Morning Report, exports to the US by value had increased recently, albeit not across the board.
He said now there would be a little bit of “wait and see” as to what would happen.
“Looking at other markets we’ve seen our exports to the EU going up.”
McClay said he was not presently speaking to the Trump administration about the tariff situation, but there had been ongoing conversations with them about the tariff rate.
“But ultimately, they haven’t come down below 15 percent for any country that has a surplus against them. There’s no evidence anywhere else in the world they’re dropping below that.”
So far for New Zealand exporters, the products that were sold to the US were still wanted and in demand despite tariffs, McClay said.
“What we’re doing is making sure they’ve got options elsewhere, which is part of why the India free trade agreement is so important for us.”
He said New Zealand also had agreements with other countries including the EU, Uk, China and Japan which were important.
“It’s not a plan B – you can sell to America and you can sell to the others if you want to.”
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