All Episodes

August 4, 2025 • 8 mins

The Finance Minister reckons New Zealand will eventually be able to work out a better deal with the Trump administration following last week's shock announcement.

President Donald Trump has unveiled a surprise 15 percent tariff on New Zealand - higher than that for both the UK and Australia. 

Finance Minister Nicola Willis says there's a possibility things could improve, given the changing trading relationship between both nations.

"The question for us is - if it does change, does that mean we get better treatment?"

LISTEN ABOVE

See omnystudio.com/listener for privacy information.

Mark as Played
Transcript

Episode Transcript

Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
And Nikolaules is the finance ministers with US high Nicola.

Speaker 2 (00:02):
Good evening, Heather.

Speaker 1 (00:03):
Do you reckon this? Is it on the tariffs? We
won't get a better deal?

Speaker 2 (00:07):
Well? I think there is the possibility that we could,
in particular because the blunt reason why we're facing fifteen
percent is that in the most recent year we had
a trade deficit with the US. We sold them more
than we bought from them. But that has changed year
to year over the past decade, and we could expect
it to change in the future. So the question for

(00:29):
US is if it does change, does that mean we
get better treatment?

Speaker 1 (00:32):
So do you think this is something that they are
going to keep revising as we go along?

Speaker 2 (00:37):
Well, I would simply observe that they have continued to
revise their position on tariffs pretty continuously, and so it's
not impossible to imagine that that could continue into them.

Speaker 1 (00:47):
But then isn't that something that's going to fluctuate every
single time we go into deficittle surplus from their point
of view.

Speaker 2 (00:53):
Look, I don't know the answer to that, but that's
exactly heavily.

Speaker 1 (00:57):
Is it possible you're being overly hopeful here, because I
mean this seems to me to have been locked in
at a point in time, and now Australia is it's
on ten percent and we sit on fifteen percent, And
I can't imagine that they're going to put the effort
into keeping on changing this every single time every single
country goes into a different position.

Speaker 2 (01:14):
This just means I'm being resolute, which is that we
need to take every opportunity and angle to push the
best case for our exporters, and we do think we
have a strong case. How that will be met by
the US administration is yet to unfold. But if this
is about trade deficits and surpluses and that's a changing position,
then we would hope that the tariff could change.

Speaker 1 (01:33):
Okay, So what's our strong case that we're taking.

Speaker 2 (01:35):
To them First That we have a very balanced and
complementary relationship, that we're a very good and long standing
friend of the US, that our trade is complementary and
non threatening, and that we do expect to be buying
quite a lot from the US in the coming few years,
and that we'd like that reflected in our tariff position.

Speaker 1 (01:52):
Is that with the boeings.

Speaker 2 (01:54):
Well with our general defense procurement, we've made a big
commitment to build holding the capability of our defense force
across a number of areas were ye'd expect US manufacturers
would be some of those bidding for the contracts.

Speaker 1 (02:07):
Had we thought about possibly removing all the tariffs that
we slap on US goods, well.

Speaker 2 (02:13):
All of those things are potential considerations in a negotiation,
but at this point, we already have incredibly low tariffs
on US goods, so we don't actually have that much
to bring to the table. And that's one of the
points that we've been making. We're not a country that's
been playing fast and loose, but we haven't tried.

Speaker 1 (02:33):
To break the rules. Their footwear we slap with ten percent.

Speaker 2 (02:37):
That's not that low, which is low relative to a
lot of other countries.

Speaker 1 (02:41):
Yeah, but we're getting ten percent and we're moaning about that.

Speaker 2 (02:43):
So tall in terms, but overall, in terms of how
much we import from the States, the average tariff rate
across what we actually import large amounts of is lower
than that. Heather, and our reciprocal tariffs are much lower
than they are and lots of the other countries. So
we've got a good case.

Speaker 1 (02:59):
What about if because I know that they are apparently
annoyed about our biosecurity regime with some of their exports
imports for US, would we consider having a look at that?

Speaker 2 (03:07):
Well, those are always things that we look at because
we play by the rules, which is we don't use
our biosecurity regime as an excuse for restricting an importation
of products. If it's ever perceived that we are, we're
always prepared to look at it. But this is a
case where anything that we do at our end we
want to lead to advantage for our exporters at the

(03:29):
US end. So those are the issues that our negotiators
will be stepping out.

Speaker 1 (03:33):
Why didn't we send Vangelis Vitalis.

Speaker 2 (03:35):
Before, Well, the very clear indication that we had at
the ministerial level was that we were not on the
naughty list, We weren't on the bad list, and that
making efforts to get negotiation weren't going to be successful
because we simply weren't on the list of people that
were at risk. And as it's played out, really there

(03:58):
was an exception made Australia based on that blunt assessment
that they export more to the US than they import
from the US, and nothing we negotiated would have changed
that blunt fact.

Speaker 1 (04:10):
Now talk me through these dock charges. How are we
going to do this at for example, let's say Cathedral Cove.

Speaker 2 (04:16):
Well, a lot of people going to Cathedral Cove go
on a boat as part of a tour group. So
you could envisage that potentially that tour group would put
the charge directly to those people they're putting on the boat.
You could also imagine that for those who walk in,
you could have some sort of a turnstile. Technology these
days is pretty advanced in terms of what perhaps we

(04:36):
can have on our phone elsewhere. That's one of the
issues that we will be consulting with the industry about
over the coming months. It cannot be too hard to
charge a simple fee for international tourists to see one
of the most beautiful places in the country. Know what,
every other country around the world manages to do it.
And anyone who says to me, oh, it's too complicated,
I say, come on, this is pretty simple.

Speaker 1 (04:58):
Really Okay? Now I like this that. Okay, are you
going to fix or change anything about the surcharge ban
as it is right now? Because you cannot tell me
that you are going to do this to some of
your voters months before the election.

Speaker 2 (05:12):
The first thing that I want to fix is I
want small businesses to hear this message, which they didn't
hear I think in some cases. Which is the first
thing that happened was the Commerce Commission regulated what prices
MasterCard and Visa can charge you for your merchant fees
and for your pay services, and they have mandated that

(05:34):
those costs need to reduce significantly by tens of millions,
which will have a cost reduction.

Speaker 1 (05:40):
Come on, Nicholae, it's nineteen million dollars out of about
a billion. It's it's it's small change. And then add
on to that everything else that gets charged on top
of Visa and MasterCard, the retail banks, it's massive. That
made no difference. What are you going to change because
you cannot do this to small and medium sized businesses.

Speaker 2 (05:57):
It is a significant cost reduction. The second thing is
that we are expecting the Commerce Commission to work with
the banks to provide businesses much more clear, transparent and
easily comparable price information to allow businesses to negotiate with
You will.

Speaker 1 (06:13):
Have noticed, Nicola, Come on, if you put this on
on businesses and you force them to absorb this mid
next year, midwinter, just before you go to the election.
You know you're going to lose voters. You can't do this.

Speaker 2 (06:23):
Well, here's the principled point, which I think is important.
We do know that consumers in New Zealand are currently
paying tens of millions and excess to charges. The Commerce
Commission have done a lot of work on this. We
have a culture in our country which I appreciate as
a consumer, Unlike some countries around the world. The price
you see on the tag is the price you pay

(06:43):
at the till, and you don't get to the till
and then have vat added this charge and that charge.
And what that does is empowers consumers to know is
it cheaper here or down the road. And we don't
think that the merchant payWave schemes are enough of a
justification for changing that long standing practice. Now, individual retailers
will manage this in different ways, but we are confident

(07:04):
that can be managed and that the consumer will win
out of it and that small businesses will adampt.

Speaker 1 (07:09):
All right now on the road Cones tipline, Can I
implore you to get rid of this thing because it's pointless.

Speaker 2 (07:16):
Well, actually, you know Van Velden brought it in for
a reason she went to her agency.

Speaker 1 (07:21):
Come on, you know it does nothing. You know that
all it does is it goes in checks that they've
got as many road cones laid out as the onerous
rules require them to. And it's costing us. What is
it like four hundred thousand dollars to run the thing?
Get rid of it, save the money.

Speaker 2 (07:35):
Well, here's the thing. So as a as a government,
the last government was spending seven hundred and eighty six
million dollars on temporary traffic management. We've brought those costs
down massively for our own road projects. But what we've
observed is that a lot of councils around the country
haven't done that, haven't changed why.

Speaker 1 (07:55):
Busci's idea is fantastic. Right, So Bush is saying, if
you don't follow the rules and go for few cones,
were withholding money. But which makes it makes Brooks tip
line just a performance so cut it?

Speaker 2 (08:05):
Well, Look, it's belt Embrace's approach. Heither is what I
would describe it as. On the one hand, we are
mandating that for councils that they have to update their
guidance and their approach, and on the other hand, we're
empowering rate payers that if they see it looking bad,
they can tip us off and gives us a clear
basis on which to follow up.

Speaker 1 (08:24):
All right, Nichola, thanks very much, appreciated. Look after yourself.
That's Nicola Willis, the Finance Minister. For more from Heather
Duplessy Allen Drive. Listen live to news Talks it'd be
from four pm weekdays, or follow the podcast on iHeartRadio
Advertise With Us

Popular Podcasts

24/7 News: The Latest
Crime Junkie

Crime Junkie

Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.

The Clay Travis and Buck Sexton Show

The Clay Travis and Buck Sexton Show

The Clay Travis and Buck Sexton Show. Clay Travis and Buck Sexton tackle the biggest stories in news, politics and current events with intelligence and humor. From the border crisis, to the madness of cancel culture and far-left missteps, Clay and Buck guide listeners through the latest headlines and hot topics with fun and entertaining conversations and opinions.

Music, radio and podcasts, all free. Listen online or download the iHeart App.

Connect

© 2025 iHeartMedia, Inc.