Todd McClay says the government is not looking for business elsewhere as New Zealand exporters face three months in tariff limbo land. Photo: RNZ / REECE BAKER
The Minister of Trade Todd McClay has written to his counterparts in the United States expressing concern at the "harm" President Donald Trump's tariffs will do to New Zealand and Pacific Island nations.
His officials had been talking to the United States Trade Representative about the government's concerns but he had not spoken directly to anyone in the Trump administration.
"I have taken the opportunity to send a letter to my counterpart... setting out our concerns around the tariffs and the harm it might do, not only to traders on both sides but also the effect it might have on Pacific Island nations.
"I said that we have strong reservations and think it's harmful to the trading relationship."
McClay told Checkpoint's Lisa Owen it was becoming clear New Zealand's additional 10 percent tariff would be passed on to the US consumer.
The Minister had recently returned from the Middle East trying where he was trying to fast-track a trade agreement with the United Arab Emirates.
McClay, who was there for an investment conference, said many countries were "talking to each other".
"Everybody is, not comparing notes, but considering the effect that a 10 percent tariff will have upon their exporters - we're doing that.
"But at the same time we're talking about ways we can ensure that the rules-based system between our countries remains because the biggest challenge New Zealand exporters - actually exporters from all over the world have at the moment - is the changing nature of these announcements and the uncertainty."
He had engaged with ministers in finance and trade from Mexico, Costa Rica, Congo, the UAE and Australia, and said it was not about taking a side against the US.
"The New Zealand Government's been very clear. We don't think the tariffs are helpful nor should they be in place against New Zealand.
"But in the meantime we have a very broad trading relationship and we're making sure it continues to work so our exporters have options all around the world.
McClay said the 90-day pause of additional tariffs on countries, such as the increase to a 145 percent tariff for China, was a welcome move.
He said working toward an agreement between the two would be "a very good thing" for world trade because other countries needed certainty.
If the US and Chinese economies - the two biggest trading partners of New Zealand - slowed down it would hurt all other countries, not just New Zealand, he said.
Asked by Checkpoint if Prime Minister Christopher Luxon had jumped the gun by contacting other world leaders, McClay said the opposite was true.
"We've been very calm as a government. You saw us announce on the first day... we wouldn't be retaliating.
"We would be taking some time to talk to not only exporters but others around the world to get a bit of sense of what's going on."
McClay did not believe Foreign Minister Winston Peters was pointing to the Prime Minister's approaches as a mis-step.
"The PM is right to be talking to Prime Ministers in other parts of the world."
He said New Zealand was always talking to strong trading partners such as the European Union and the United Kingdom about how to bring down trade barriers and make it easier for exporters on both sides to trade with each other.
The phone calls were just a continuation of that, McClay said, and he denied it made New Zealand look hostile or as if it was "circling the wagons" and going elsewhere for business.
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