NZ Trade Minister Todd McClay says the US should be aware that the trade from New Zealand is complementary, not competitive. Photo: RNZ / Samuel Rillstone
As the United States brings in new additional tariffs on soft wood and Donald Trump again threatens taxes on films, New Zealand's trade minister is talking up the resilience of the local industries.
He says the impact of tariffs has typically been less than the impact of the uncertainty and change they bring.
The 10 percent tax on softwood like New Zealand-grown pine applies immediately, with rates of 25 percent for upholstered furniture, kitchen cabinets and vanities. Those increase to 30 percent for upholstered furniture and 50 percent for cabinets and vanities from 1 January 2026.
The United Kingdom would get a lower maximum rate of 10 percent, while Japan and the EU would get a maximum rate of 15 percent, in line with their trade agreements with the US.
Just as the announcement was being made in the US, NZ Trade Minister Todd McClay told reporters he was expecting tariffs soon.
"What we're seeing is some of the people in the building trade, those that make houses in the US are starting to ramp up concern, because they are fearful that that would lead to higher house prices when they build," he said.
"Ultimately, we've been engaging with the New Zealand wood sector that exports to the US for many, many months so that we can make sure that the US is aware that the trade from New Zealand is complementary - it doesn't compete.
"But as we have been seeing, the President of America makes a decision, it affects all countries of the world not just New Zealand."
New Zealand's timber and related industries have been suffering the impact of high energy prices over recent years, leading to the closure or restructuring of several wood and paper mills.
McClay was confident New Zealand exports would still find markets, with the EU and UAE trade agreements both guaranteeing zero tariffs on goods sold there, and an agreement with the six Gulf states set to take effect soon.
"Many of our exporters have already diversified. Yes, they would like to be selling more in the US - in some cases they are - but there are still lots of opportunities."
McClay said several New Zealand companies had put a lot of effort into growing their exports to the US, and tariffs would have an impact on them and increase prices for consumers.
"As you've seen in some other areas, we're selling more to the US not less even with the tariffs in place - but as with many of these things, it is the uncertainty and changing nature that's making it hard for New Zealand exporters, often more difficult than the tariff rate itself."
McClay said he would be meeting with big players in the film industry in the US tomorrow to discuss the potential impacts of the proposed tariffs on movies, describing it as a "headache for Hollywood".
McClay said Trump had campaigned on tariffs so in that sense they were unsurprising.
"But in itself, the President of America is making decisions and the decision making rests in his office as to how he will treat goods and services.
"Ultimately, as I talk to exporters, they are either passing on the cost of the tariff or absorbing some of it. But you know, the changing nature and any further escalation is affecting every country of the world.
"That in itself has a drag on some of those exports, but we have an end strategy. Of course, we want to trade with the US - and China, and the European Union, and India, and all of these other countries as well. So our exporters have very good market access, they're well diversified."
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