NZ Red Meat Sector Watches US Tariff Decision as Sheepmeat Exports Boom
New Zealand red meat exports are booming but a pending decision in the White House, Washington D.C., could dent sheepmeat earnings.
Trump has imposed a worldwide 10% tariff and the word is he wants to up this to 15%.
What is unclear is whether this is on top of the 15% rate imposed on NZ exports to the US, although that scenario seems highly unlikely.
As Dairy News went to press, Ministry of Foreign Affairs and Trade staff in Washington were desperately seeking clarification about the broad statement issued by Trump on social media.
Dairy News understands the situation is very tricky and that towards the end of last week, MFAT staff were unable to get any great clarity on how Trump's latest move will affect our exporters to the US. For NZ, the devil will be in the detail.
Only days before the US president made his latest announcement, Trade Minister Todd McClay was waxing lyrical about the US Supreme Court declaring the 'liberation day tariffs' illegal and hoped that this may now open up new opportunities for NZ.
But just days later Trump found another way to apply tariffs, and so now NZ and the rest of the world is left wondering and waiting.
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Earlier when the US lifted the 15% tariffs on beef, offal, kiwifruit, avocados and fresh fruit and berries there was hope that the situation might settle down. However, the unexpected is now the norm and volatility and uncertainty reign again.
It may take some time for the final outcome to unravel and until then our exporters will be on tenterhooks, wondering what might happen next. For them it's an unnecessary and unfair roller coaster ride.
One commentator suggested to Dairy News that the ongoing US tariff war highlights the value olf the NZ/India FTA which will hopefully be ratified soon by the NZ Parliament and bring some more stability to our primary export driven economy.
