Todd McClay: Trade Minister warns Donald Trump's tariffs likely to have an impact on Kiwi businesses

New Zealand's Trade Minister isn't speaking out against Donald Trump's tariffs just yet, but admits they'll impact Kiwi businesses.

The US President has imposed tariffs between 10 to 25 percent on Canada and Mexico.

Canada is slapping levies on US goods in response, and Mexico's threatening to do the same.

Todd McClay says his focus is on our relationship with the US. 

"We are talking to them about the importance of our relationship and how balanced the trade is - and we're just going to keep doing that for New Zealand exporters."

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Episode Transcript

Speaker 1 (00:00):
The New Zealand stock market was down about one and
a half percent almost two percent at low point today.
This reacting to Donald Trump's tariffs on Canada, Mexico and China.
The New Zealand company Fisher and Pikel Healthcare announced its cost.

Speaker 2 (00:12):
Would increase as a result.

Speaker 1 (00:15):
That's because about forty percent of their products are made
in Mexico for the US market, so they are affected
by that. Their shares finished the day down six point
eight percent.

Speaker 2 (00:25):
Topacclaims the Trade minister, he's with me, good evening, Ryan, Hey,
it's consident. Did you expect him to go as far
as he did?

Speaker 3 (00:33):
Well, Look, I think it's fair to say it was
campaigned on, It's been pretty well signaled, so not surprised
by it at all. Twenty five percent tariffs against Mexico
and against Canada, a lesser amount for China. The very
interesting thing, I think, and this is probably nuanced, as
he said, these will go on unless so. The President

(00:54):
of America has said he is concerned about what's happening
at their borders with those two countries, and it's obviously
he won them to engage and to make some manyful
changes there. But in the meantime, they're facing tariffs, which,
whilst we're not directly captured, is going to have an
impact upon some New Zealand businesses.

Speaker 1 (01:11):
Canada, Canada and Mexico and China are obviously speaking out complaining.

Speaker 2 (01:18):
Will we support them in their complainants.

Speaker 3 (01:21):
Well, firstly, we're focused on what's happening in our relationship
with the US and any impact that there could be,
you know, for New Zealand exporters. I think it's important
to note that we've always had a very positive, constructive
relationship with US. The difference in our trade with America
compared to those three countries is it's a very well
balanced We buy and sell very similar amounts of you know,

(01:43):
of trade and investment in both directions, and therefore I
think we're in a very very different camp they are.
But there's been a lot of contact at official level
with the new administration. Prime Minister Luxeen has spoken with
President Trump directly, which was very constructive, and the Foreign
Minister he'd had ongoing and detailed conversations with his counterparts.

(02:04):
So we are talking to them about the importance of
the relationship and how balanced the trade is, and we're
just going to keep doing that for New Zealand exports.

Speaker 1 (02:12):
We'd be stupid to join forces in singing chorus with Canada,
or with Mexico or with China. Albeit we support free
trade because we don't want to make ourselves a target,
do we. But at some point, you know, we're a
member of the wto China is taking a case there,
do we have in a position?

Speaker 3 (02:28):
Yeah, well, we'll wait and see exactly what that case is.
I mean, China themselves are doing an investigation and a
beef into their market, of which we are providing information
because we're an export of beef there.

Speaker 1 (02:41):
I think.

Speaker 3 (02:41):
I think in as far as the W is concerned,
there have always been issues around trade. They come up
a lot, and they come up very very often, and
ultimately where it's in New Zealand's interest and we have
a role to play or we're involved, we do take
our position to speak up to today, though, our exporters
are asking us to focus on that relationship with the
US and make sure that we not only have reached

(03:02):
out to the new administration, we are promoting the very
fair and balanced way that New Zealand trades with the US.

Speaker 2 (03:08):
We're going to get a making there soon. With Luxan,
do you think or with this, Well.

Speaker 3 (03:13):
There are opportunities during the course of this year in
as far as trades concerned. My counterpart, the USTR Trade
representative career, he's not in place yet, he's still going
to go through the confirmation and so at the moment
that he has I have the ability to talk to him. Interestingly,
he was part of the Trump administration and trade last
time President Trump was the president. I was a trade

(03:34):
minister then as well, and we faced similar sorts of
things who were tariffs against Mexico and America and Mexico
and Canada. Then you remember they pulled out of a
CPTPP that you know in New Zealand's the forefront with
We were able to build a good relationship with that administration,
and again based upon New Zealand respecting rules and actually
you know, the trade being very very balanced. We'll be

(03:56):
doing everything we can to make sure they're aware of
that of the US and as soon as my counterpart
is confirmed, to me seeking at the very least a
good positive telephone conversation with him.

Speaker 1 (04:06):
I've got Scott brown on, former US Ambassador to New Zealand.
From you former US ambassadors to New Zealand. He's coming
on the show after six and he's told me just
before we came on, he said he thinks we should
be going for an ft A, even with Trump and
because of that balance of trade that you've been talking about.

Speaker 3 (04:23):
Well, we're free traders and we believe in a rules
based approach. You've seen last year we've done two deals
very very quickly, in surprise people actually with the UAE
and that one with the Golf States the GCC. You know,
after a long time talking.

Speaker 1 (04:37):
You'd still push, you know, even though it's Trump and
even though he likes the tariff, you still push for
an FTA.

Speaker 3 (04:42):
Well, what I was going to say is the likelihood
of an FDA with the US is not strong. We'll
be talking about ways to grow to a trade that's
beneficial for the two economies. I don't expect we would
have an FDA, so it's probably not going to be
the first thing I'll raised with them when I get
my call in.

Speaker 2 (04:57):
Thanks for your Tom Todd Todd to play the trademan
that for more from Hither Duplessy Allen Drive. Listen live
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Speaker 3 (05:04):
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