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Trade Minister Todd McClay
Trade Minister Todd McClay says the US tariff decision appears to be based on a calculation of trade deficits, with countries running a surplus with the US moved to the higher rate.
He says in NZ's case our surplus is a modest US$500 million, and is not overly significant in the context of the US economy.
He says over the past decade there have been times when the US has enjoyed a significant surplus over us and overall, our trade is balanced and complementary.
McClay says he's seeking an urgent call with the US Trade Representative to make NZ's position clear, because the 15% tariff they have imposed risks harming exporters and consumers of both countries.
"The US currently faces an average tariff of just 0.8 per cent when exporting to NZ, far lower than what we face into their market," he says.
McClay says NZ has always stood for open, rules-based trade and will continue to advocate strongly for a resolution that supports our exporters and maintains the strength of our trading relationship with the United States.
Former Labour Trade Minister Damien O'Connor describes the US tariffs as a serious intervention on global markets and the core products that the NZ primary sector exports.
He believes it may take some time for the effects of the new tariffs to hit the pockets of NZ farmers but it will have a significant impact on our meat processing plants, which he says are really squeezed financially with some not making profits.
He says everyone will have to adjust to the inevitable changes in the market, but this will cost money.
O'Connor says recent initiatives by the industry to lure consumers to NZ products are good.
He points to the recent Taste Pure Nature campaign in China and Zero Carbon beef by Silver Fern Farms as examples of this.
"But this tariff disruption is no doubt going to squeeze them and the farmers over time," he says.
Trade Minister Todd McClay says his officials plan to meet their US counterparts every month from now on to better understand how the 15% tariff issue there will play out, and try and get some certainty there for our exporters about the future.
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