Nicola Willis said she is aware that some exporters are worried about the impact the move could have on them. Photo: RNZ / Samuel Rillstone
The Minister of Finance and Economic Growth says the government will make the case for continuing trade access to the US.
President Donald Trump's tariffs on Mexico, Canada and China have sparked retaliation from all three countries.
Nicola Willis told First Up that while Aotearoa is not directly affected, she is aware that some exporters are worried about the impact the move could have on them.
She says the government will protect free trade and engage respectfully with the US.
Nicola Willis says the government is confident it can pursue New Zealand's best interests with the US administration.
Sense Partners economist John Ballingall told Morning Report's Corin Dann on Monday the move could spark a potential retaliatory trade war between the nations, spelling bad news for New Zealand exports.
"The larger concern for New Zealand is that Trump's actions here lead to retaliation, which we're already seeing from Canada, Mexico and China, and that that blows up into a full-blown trade war.
"When that happens, you'll see global GDP growth go down, and that means lower demand for all of the things that New Zealand exports."
He acknowledged there are possible upsides in the short term. As dairy products going into Canada become more expensive. This could potentially open up new opportunities for New Zealand.
"I don't want to paint this as something which is great for New Zealand. The medium-term and longer-term consequences are pretty worrying."
Especially, he said, if the scope of Trump's tariff tactics widens to include Europe.
"Europe's already talking about how it might retaliate. We know the EU does this pretty effectively. It's got a list of products that it would counter-punch with.
"So again, it's not hard to see this skill heading relatively quickly into something much more concerning to New Zealand."
US President Donald Trump speaks to journalists in the Oval Office of the White House in Washington, DC, on 30 January, 2025. Photo: AFP
However, on Tuesday morning (NZT) Trump said he had agreed to "immediately pause" tariffs on Mexico for a month after a "very friendly" conversation with the country's president Claudia Sheinbaum.
"I just spoke with President Claudia Sheinbaum of Mexico. It was a very friendly conversation wherein she agreed to immediately supply 10,000 Mexican Soldiers on the Border separating Mexico and the United States," Trump wrote on Truth Social.
"These soldiers will be specifically designated to stop the flow of fentanyl, and illegal migrants into our Country," he wrote.
"We further agreed to immediately pause the anticipated tariffs for a one month period during which we will have negotiations headed by Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent, and Secretary of Commerce Howard Lutnick, and high-level Representatives of Mexico. I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a "deal" between our two Countries," the president went on.
The 25 percent tariffs on Mexico had been set to take effect at midnight.
