New Zealand goods face 10 percent tariffs in US.
New Zealand exporters are facing a significant hit after the United States announced 10 percent tariffs for New Zealand goods entering its market. According to Labour trade spokesperson Damien O'Connor, this decision will result in an estimated $900 million loss for NZ exports.
The long-term impact on prices and inflation remains uncertain, with O'Connor stating that it may take time for the full effects of the tariffs to be realized. The cost of these tariffs is also unclear, with potential options including US consumers or New Zealand exporters.
The ripple effect of the tariffs is expected to be felt globally, particularly in China, which could impact prices back in New Zealand. O'Connor has questioned Trade Minister Todd McLay's initial assertion that NZ would not be caught by the tariffs, citing today's announcement as proof otherwise.
The move comes amid ongoing trade negotiations between countries and has sparked concerns for exporters who may shift their goods to other markets, potentially affecting New Zealand's trading position further.