US tariffs hit European ag machinery markets
The climate of uncertainty and market fragmentation that currently characterises the global economy suggests that many of the European agricultural machinery manufacturers will be looking for new markets.
New Zealand will face a 15% tariff on goods into the United States, higher than the 10% initially announced by US President Donald Trump earlier this year.
Beef + Lamb New Zealand chair Kate Acland says the move places kiwi farmers and exporters at a "clear competitive disadvantage" in what is one of New Zealand's most valuable markets.
"New Zealand now faces higher additional tariffs than many of our competitors in the US market, including Australia," Acland says.
She says that only Brazil and Nicaragua face higher additional tariff levels.
"The increase undermines the level playing field and risks diverting trade flows away from New Zealand, despite extremely strong demand for our products," Acland adds.
"Our farmers pride themselves on delivering high-quality, sustainable, nutritious red meat. These additional tariffs make it harder for our farmers to receive fair returns for their products.”
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Meanwhile, Meat Industry Association chair Nathan Guy says the US was New Zealand's largest market for red meat in the year to June.
He says that while New Zealand has a robust trade strategy and well-established relationships across more than 100 markets, the decision is a setback for red meat exporters.
“Tariffs distort trade and reduce market efficiency, ultimately forcing exporters and producers to accept lower prices while leaving consumers with fewer choices and higher costs," Guy says.
He says the US is a key importer and exporter of beef, meaning the decision will likely have implications for the global beef market.
“Tariffs distort trade and reduce market efficiency, ultimately forcing exporters and producers to accept lower prices while leaving consumers with fewer choices and higher costs," he adds.
“We’re hopeful the New Zealand Government can seek a resolution that restores fair access for New Zealand’s red meat exports to the US.
“The New Zealand red meat sector will continue to advocate for open, rules-based trade that supports our farmers and ensures consumers around the world have access to high-quality, sustainably produced food.”
