Todd McClay: Trade Minister discusses rollback of US tariffs on beef, offal and kiwifruit

The Trade Minister's cautiously welcoming a rollback of US tariffs on food imports including New Zealand beef, offal and kiwifruit.

US President Donald Trump's signed an executive order reducing the tariffs.

The affected New Zealand products represent around 25 per cent of our exports to the United States, worth more than two billion dollars annually.

Trade Minister Todd McClay told Mike Hosking that it's still a very uncertain time for Kiwi exporters.

He says he's concerned about the changing nature in the White House and even though it's been reduced, the tariffs could be brought back.

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Episode Transcript

Speaker 1 (00:00):
It looks like the US President capitulated over the weekend.

(00:02):
Executive order got signed reducing the tariff's on red meat, tomatoes,
kiwi fruit among other food items. We are, of course
a big winner. Todd mclay's the Trade minister in indiaries
with us.

Speaker 2 (00:10):
Good morning, Mike, good morning.

Speaker 1 (00:12):
So what we got over the weekend from the White House?
Do we have detail what it actually means or was
it just an announcement.

Speaker 2 (00:19):
Well, look, it's just an announcement, but my officials been
able to dig into it a little bit. It does
seem that the tariff rate of fifteen percent has been
rolled back on a number of products and sells up
there the most important ones or beef, beef offul and
a few other things in the beef sector, and then
also kiwi fruit. That's a saving about three hundred and

(00:39):
thirty million dollars. We yes to make that fifteen percent tariff,
but I've sort of said I'm welcome it cautiously. The
changing nature of decisions out of the Whitehouse still makes
it very uncertain for New Zealand exporters, and there are
many other exporters that are still facing the fifteen percent tariff,
which is challenging for them.

Speaker 1 (01:00):
Say for beef, it goes back to what do we.

Speaker 2 (01:03):
Know, So it goes back to before the fifteen percent
was put on. So for US it will be the
equivalent of the most Favored Nation status, which is very low.
It's less than one percent, So it really means a
very level playing field with every other beef and porter
in the world the same tariff freight that Australia faces.

(01:24):
The only difference there is from memory, Brazil faces about
a forty percent tariff, so you know we are more
competitive than them.

Speaker 1 (01:30):
When does it start?

Speaker 2 (01:32):
My understanding is it started already. Nobody gets money back,
but from the moment that the announcement was made just
a day or two ago. Look, that is very welcome news, Mike.
I think the reason it's happened is that the US
doesn't produce enough beef. They have to import it. We've
seen beef prices go up in the US. I guess
Hamburger is going to be more expensive, and that in

(01:55):
keying for another other fruit, the administration the presidents decided
to with the teriff right in itself. That's the first
time we've seen that. There's been nothing else really that
has gone back to zero. But what does concern me
a bit is that changing nature. The decision we're made
to take it off today. In the future they could
and put it back on. In the meantime, beef farmers

(02:16):
in New Zealand and the exports will be extremely pleased.
I think what we'll see is our beef exports returned
quite quickly to the levels they were before, to fifteen percent.
We could even see a bit more beef sold in
that market.

Speaker 1 (02:29):
Elban Easy claims it's all him, his lobbying.

Speaker 2 (02:32):
Do you believe that, Well, it's not for me to
question the views of another Prime minister. Of that's the
whole of New Zealand beef exporters who produce better beef
than Australia. Thank them all right.

Speaker 1 (02:44):
Nice to talk to you, Tom McLay out of India
this morning. And here's the inside I'm reading over the weekend.
So rancher's difficulties increasing the herd they've got, drought, diminished
amount of grasslands, higher costs and buying feed important fertilizers
of double digit tariffs. Of course, tariffs on steel and
alumini increase the cost of farm equipment. Generally, we're in
one of the toughest cattle cycles in history. This is

(03:05):
a farmer out of Texas. Replacement heifers are down to
a twenty year low. And meantime, downtown in America, you're
average American for burger meat is paying somewhere between twelve
and eighteen percent. More So, they're sick of it, and
they've had enough, and so Trump acquiesced.

Speaker 2 (03:20):
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