Prime Minister Christopher Luxon says the US decision to impose new 12.5% tariffs on New Zealand products is “extremely disappointing” and will drive up costs for businesses.
US President Donald Trump earlier announced he was going ahead with new double-digit tariffs on dozens of US trading partners just as the clock runs out on stopgap levies he imposed after a stinging defeat at the US Supreme Court.
The new taxes – of 10% to 12.5% on imports from 60 countries – account for 99% of US imports. The Trump administration accuses the 60 countries of inadequately enforcing bans on goods produced by forced labour, following an investigation by the US government.
New Zealand is on the list, and faces a rate of 12.5% for the new tariffs – although it appears beef and kiwifruit, two of our big exports, are excluded. Dairy and wine – another of our two big exports – do not appear to be excluded, however.
These tariffs will also probably be struck down as unlawful. They are not based on any objective or rational evidence. But in the interim it just dries up prices for US consumers and reduces income for NZ exporters.
David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders
1 comment:
This is simply as it was before when Trump originally imposed tariffs. As we don’t have a free trade agreement with the United States they can impose whatever tariffs they like, although whether that is in their own interests is another matter.
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