New Zealand Prime Minster Christopher Luxon has said the tariffs announced by the US are “not good for global economics.”

New Zealand is among a group of nations that will face a baseline 10% tariff.

“Let’s be clear tariffs, and a trade war, is not good for global economics,” said Luxon. “There are about $900 million dollars  being leveled at New Zealand exports and that will be passed on to US consumers sadly. And that’s why tariffs are not the way to go because it ends up driving higher prices for US consumers, higher inflation, slows down growth and a result that puts real pressure in across the world.”
Foreign Minister Winston Peters cut a more optimistic figure within New Zealand’s cabinet, arguing the US announcement was cause for “celebration,” because other countries have it worse.

New Zealand has ruled out imposing reciprocal tariffs on the US. But Wellington is disputing the US claim that New Zealand imposed 20% tariffs on US goods, a figure that appeared in a list presented by US President Donald Trump as he announced the tariffs. McClay said the figure is closer to 17%.

ANZ Chief Economist Sharon Zollner told CNN the tariffs alone would not be a game-changer for New Zealand exporters, but there could be indirect impacts.

“The US takes less than 12% of our goods exports by value, with beef and wine the most exposed. While it will undoubtedly be significant for some firms, at a macro level it isn’t a game-changer for the New Zealand economy,” said Zollner. “Indirect impacts - e.g. on China’s economy, the broader global economy, and/or on our currency - are likely to be more important.”

Madina Mammadova\\EDnews