Mike's Minute: Why is Retail NZ calling for tariffs?

It's hard to reconcile but the power of self interest is never to be underestimated. 

Retail NZ is loving the look of the EU, who this month started a new tariff on cheap goods. 

It's three euro per package for anything under 150 euros. 

It's aimed at Temu and co. 

It's an easy argument to make because who likes Temu? Who likes cheap, nasty, tacky, plastic-y stuff that pollutes the world and is made in mass factories, paying people dirt wages, if not slave wages? But the answer is, apparently, heaps of us. 

Nothing sells a product to more people, more often, than a cheap price tag and that is why China is a powerhouse and that is why your Temu's have conquered the world. 

So Retail NZ wants us to "do an EU" and tariff the same way. 

The trouble is we are free traders. We basically invented free trade, we are good at free trade, and in terms of doing business with the world, no one operates an easier-access marketplace than us. 

And boy have we, and we are, doing well out of it. Given that, you can't then go and be something else when it suits you. 

Tariffs are poison because for every person you protect, someone else picks up the bill. And for every tariff you generate, you invite another player to generate one back. 

We are the luckiest of consumers right now because we have lived through a moment in history where tariffs and their destructive outreaches have been on full display with thanks to the US President. 

For a while there it looked like the free trade train that had built up a serious head of steam over the past 50 years was in danger of being completely derailed. The US unilaterally and randomly applied numbers to goods pulled out of a hat. 

The Supreme Court quelled it. It's still not over, but Trump is going back and forth. 

As a result, normal-ish business will be resumed with a Rubio, Vance, or Newsom-type White House. 

In the meantime, as we revel in our continually record-breaking revenue streams from beef and lamb and kiwifruit to India, the US, China, and the EU, it's no time to be sending mixed messages on the way we conduct business. 

Retail NZ – back in your box. 

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
Hard to reconcile, I know, but the power of the
power of self interest is never to be underestimated. Retail
in New Zealand is loving the look. They reported the
EU who this month started a new tarifon cheap goods.
It's three euros per package for anything under one hundred
and fifty euros. It's aimed at TIMU and Co. Of course,
easy argument to make. I mean, who likes Timur? Who

(00:21):
likes cheap, nasty, tacky, plasticy stuff that pollutes the world
and has made in mass factories paying people dirt wages,
if not slave wages. Answer heaps of us. Our nothing
sells a product more people, more often than a cheap
price tag, and that is why China is a powerhouse,
and that is why our teams have conquered the world.
So retail New Zealand wants us to do an EU
and tariff the same way. Now, our trouble is, we're

(00:43):
free traders. We basically invented free trade. We are good
at free trade and in terms of doing business with
the world, no one operates an easier access marketplace than us,
and boy have we are we doing well out of it.
So given that you can't then go and be something
else when it suits you. Tariff's a poison because for
every person you protect, someone else picks up the bill.
And for every tariff you generate, you invite another player

(01:04):
to generate one back. And we are the luckiest of
consumers right now because we have lived through a moment
in history where tariffs and there destructive outreaches have been
on full display thanks to the US President. For a
while there it looked like the free trade train that
had built up a serious head of steam over the
past fifty years was in danger of being completely derailed.
The US unilaterally and randomly applied numbers to goods pulled

(01:26):
out of a hat. The Supreme Court quelled that, thank god,
it's still not over. But Trump, to paraphrase his maloney,
barb back and forth. People come and people go, and
as a result, normalish business will be resumed with a
Rubio or Vance or Newsom type White House. Meantime, as
we revel in our continually record breaking revenue streams from
beef and lamb and kiwi fruit to indige the US,
China and the EU, it is no time to be

(01:47):
sending mixed messages on the way we conduct business so
retail in New Zealand. Back in your Box For more
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