Prime Minister Christopher Luxon says there's no suggestion Trump will budge on a 15 percent trade tariff for NZ exports. Photo: RNZ / Mark Papalii
The Prime Minister says there's no suggestion the US President will budge on a 15 percent trade tariff for New Zealand exports.
Trade Minister Todd McClay met with his counterpart in Washington this week to convey the government's concerns about the rate.
Both he and Finance Minister Nicola Willis protested New Zealand had been hit with a "very blunt formula" when the US revised its list of tariffs last month.
At the time, McClay said it was an unfair penalty for what was a small trade deficit and immediately took steps to make a case to the US for a lower tariff rate.
It appears his efforts have fallen flat, with Christopher Luxon confirming Donald Trump would not change his mind in a media stand up this morning.
"The President's very fixed in his views that if you're running a surplus with the US then everyone gets the minimum 15 percent, if you run a deficit you get the minimum 10 percent, so I don't think we should expect any change in that regard."
McClay discussed the disadvantage the tariff created for New Zealand exporters in relation to other countries with US Trade Representative Jamieson Greer and Secretary of Agriculture Brooke Rollins this week.
"[They] discussed shared concerns about the harm that heavily subsidised, trade-distorting practices of some countries are causing to the New Zealand and US dairy industries," the Minister's post-meeting statement said.
"They agreed that dairy farmers were important to both governments and that they shared significant concerns over the effect these trade-distorting practices have on our respective dairy industries."
Both sides also agreed to explore ways to jointly combat these harmful practices and support dairy farmers.
Trade Minister Todd McClay met with his counterpart in Washington this week to convey the government's concerns about the rate. File photo Photo: RNZ / Samuel Rillstone
McClay said Ambassador Greer recognised New Zealand applies low tariffs against US goods but confirmed the additional 5 per cent tariff imposed on local exports was in relation to New Zealand's balance of trade surplus.
Both sides have agreed officials would meet over the coming months to discuss the impact on tarrifs on New Zealand-US trade and "consider practical ways to give exporters greater certainty".
Ambassador Greer and Minister McClay will next meet during the Association of Southeast Asian Nations (ASEAN) Trade Ministers' Meeting in Malaysia in September and again at the Asia-Pacific Economic Cooperation (APEC) Leaders' Summit in Korea in October.
The government continues to pursue more engagement with the US, with Foreign Affairs Minister Winston Peters has spoken to his Secretary of State Marco Rubio to discuss defence and trade this morning.
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