Trade Minister Todd McClay Clarifies U.S. Tariff Implications for New Zealand
Trade Minister Todd McClay has received clarification from U.S. officials regarding the new tariff regime announced by President Donald Trump. The United States will impose a flat 10% duty on all imports, including those from New Zealand, effective April 5, 2025. This tariff will be applied on top of any existing duties, with specific exceptions for certain products. Notably, steel and aluminum exports from New Zealand will not face additional tariffs beyond the existing 25% already in place. Additionally, wood products are currently exempt from the new tariffs pending the outcome of an ongoing investigation, expected to conclude by November. McClay emphasized that New Zealand does not impose a 20% tariff on U.S. exports, countering claims made by the U.S. administration. He highlighted that New Zealand’s average tariff rate is approximately 1.9%, with many U.S. products entering duty-free. The Minister expressed concern over the U.S. methodology for calculating tariffs, noting that it is based on trade imbalances rather than actual tariff rates. McClay intends to engage further with his U.S. counterparts to advocate for the removal of these tariffs, emphasizing the balanced and complementary nature of the trade relationship between the two countries.
Published Date: 4 April 2025
Source: RNZ
NZ Shares Fall Sharply as U.S. Tariff Chaos Hits
The New Zealand share market faced a sharp decline, with the NZX 50 index dropping 3.7% to 11,776 points, erasing $2 billion in market value. This downturn is attributed to the global financial market turmoil following the U.S. tariff policy. Companies like Fisher & Paykel Healthcare and Mainfreight saw significant share price reductions. The impact was also felt in overseas markets, with notable declines in Australia, Japan, and Hong Kong. Investors are closely monitoring European markets and Wall Street for further developments.
Published Date:7 April 2025
Source: RNZ
NZ Share Market Dips Amid Ongoing Global Trade Volatility
New Zealand’s stock market suffered another decline, reflecting intensifying global market turbulence. On Friday, the NZX50 index fell 1.5% following a broader downturn in Wall Street and Asian markets, driven by escalating trade tensions between the US and China. The decline follows a brief surge the previous day, where the market experienced its best session in five years after a temporary tariff pause by the US. However, investor optimism quickly faded as fears of a prolonged trade war reemerged. US President Donald Trump’s tariff strategy, particularly targeting China, has created significant uncertainty across global markets. Major New Zealand exporters with exposure to the US, such as Fisher & Paykel Healthcare and Skellerup, were among those hit hardest. Analysts warn that unless clarity emerges in global trade policies, this volatility could persist. Investors are urged to remain cautious as economic signals remain mixed, and market sentiment continues to fluctuate.
Published date: 11 April 2025
Source: RNZ
Weird Tariff Frenzy Could Cost NZ $900 Million in Export Earnings
The recent wave of aggressive US trade tariffs, dubbed a “Weird Tariff Frenzy,” has alarmed global markets and placed New Zealand in a precarious trade position. The US administration has paused tariffs on most countries for 90 days, excluding China, but this sudden shift has created confusion. New Zealand now faces a 10% tariff on its exports to the US, which could result in an estimated $900 million loss—around 2% of the national economy. Key exporters like Fisher & Paykel Healthcare and Mainfreight are already grappling with the implications. While some analysts see potential for NZ to fill new market gaps caused by disrupted global trade, the risks of inflation, slowed global growth, and even recession loom large. The NZ government is actively pursuing strategic partnerships and free trade deals to mitigate the impact, particularly with the EU, India, and CPTPP nations. Meanwhile, local exporters are scrambling to adapt as uncertainty grows around long-term trade policy stability.
Published date: 14 April 2025
Source: RNZ
Retail NZ Calls for Simplification of Complex Card Surcharge Fees
Retail NZ is urging for a simplification of the intricate card surcharge fee structure, highlighting the challenges retailers face in managing diverse transaction fees. Chief Executive Carolyn Young emphasized that the current system, influenced by factors such as card type, issuing bank, and transaction method, has become increasingly complicated, especially with the rise of technologies like Paywave. The Commerce Commission is reviewing these charges, acknowledging that some businesses may be overcharging consumers, though it’s difficult for shoppers to detect. Retail NZ advocates for a more transparent and straightforward fee system to alleviate the burden on merchants and ensure fair pricing for consumers.
Published date: 29 April 2025
Source: RNZ
ASB Predicts Deeper OCR Cuts Amid Government Spending Reductions
ASB Bank expects the Reserve Bank of New Zealand (RBNZ) may need to cut the Official Cash Rate (OCR) more deeply than previously forecast. This comes after Finance Minister Nicola Willis announced a sharp cut in government operating allowances to $1.3 billion, focusing on core areas like health, education, and defense. ASB’s senior economist Mark Smith suggests that tighter fiscal policy will likely slow economic activity, increasing the need for monetary support. The RBNZ had signaled the OCR could fall to around 3.0% by the end of 2025. However, risks from global trade uncertainty and reduced domestic spending may prompt more aggressive cuts. BNZ’s Stephen Toplis also notes challenges from “Trumpflation”—inflation with weak growth—which could limit the RBNZ’s policy clarity going forward.
Published date: 29 April 2025
Source: RNZ