Carl Carrington: NZ King Salmon CEO on what Donald Trump's new tariffs mean for the business

New Zealand is finally in the firing line of Donald Trump's tariffs - but one Kiwi CEO is determined to make the best of things.

Under the new regime, New Zealand faces a 10 percent tariff on all imports into the states across all industries.

NZ King Salmon CEO Carl Carrington says the company will work through this development over the coming weeks - but he's not too worried.

"I think we have, to some degree, some protection, as the consumers in most channels tend to have a lot more discretionary spending power."

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Episode Transcript

Speaker 1 (00:00):
Bryan Bridge.

Speaker 2 (00:01):
So ten percent, that's the tariff we're going to have
to pay, and that's on our nine billion dollars of
exports to the United States. The Minister says it would
cost us, guess on those numbers around nine hundred million
dollars plus. There is the flow on effects from a
potential globalized trade war and what that could mean for
some of our businesses. Nzied King Salmon CEO Carl Carrington's

(00:22):
with me tonight.

Speaker 1 (00:23):
Hi Carl, how are you? Yeah? Good? Thanks?

Speaker 2 (00:26):
Good to have you back on the show. What does
this mean for your business?

Speaker 1 (00:32):
Well, to be honest, I don't think it means very much.
We sell most of our volume to the USA through
premium food service, so very high end restaurants and very
high end retail, so I think we have to some
degree some protection as the consumers and those channels tend

(00:52):
to have a lot more discretionary spending power. But we're
just working through what it will for our customers over
the coming weeks as it's sort of all folds. But
we don't foresee that it's going to have an impact
on our margins in the USA, because after all, this
is really a tax on USA consumers and hopefully they

(01:16):
get some tax relief coming over the hill fairly shortly.
So the US, though, it is forty percent of our business,
so it's about eighty five million million dollars in export revenue,
so you know, will be keeping a close eye on it.
But to the extent there's any reduction in demand, we're

(01:38):
simply going to divert those volumes to other strategic growth markets.
So for US, that will mean Australia and China, and
we might be able to do a little bit more
with New Zealand retail partners as well. But we're a
little bit unique, i think, compared to other New Zealand
primary producers, and so far as we don't have a

(02:00):
global demand challenge. Rather we're constrained by supply, so you know,
to be very clear about that, we have a lack
of supply. So any point that falls out of the USA,
we'll be able to place elsewhere in pretty short order.

Speaker 2 (02:15):
You did sound quite confident. You sound quite calm for
a guy who's got forty percent of his business going
to the States.

Speaker 1 (02:21):
But I'm not losing any sleep, favorite but hopefully I'm
not being naive about it.

Speaker 2 (02:28):
But the fact it's a premium product. That's the key
to this, isn't it. Because if you were selling you know,
lineback biscuits into supermarkets, you'd be a bit more worrying.

Speaker 1 (02:38):
If I was in that segment, I would be Yeah,
I'd have a different disposition. But you know, thanks, salmon
is really only farmed in New Zealand. There's a little
bit of supply from in the USA, but you and
I would eat more salmon than they produce. So it's
really we are protected and that it is the wagu

(03:00):
off the cee. It's the most premium of the salmon species,
so that does give us a bit of protection.

Speaker 2 (03:07):
Really appreciate your time, Carl. Good to have you back
on the show. And let's hope you can get growing
to meet that rising demand soon. Carl Carrington, I know
we've spoken about ways you want to do that. Carl
Carrington in zid King Salmon's CEO. Here on News Talks.

Speaker 1 (03:19):
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Speaker 2 (03:23):
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