August 1, 2025 • 5 mins
The Trade Minister's hitting the phones, as it's confirmed US tariffs on New Zealand will be higher than when they were first announced.
The Trump administration has confirmed base tariffs will now be 15 percent -- up from 10, in a decision that impacts countries including New Zealand.
It's believed the new rate applies to those with a trade deficit with the US.
Todd McClay told Heather du Plessis-Allan that he's seeking an urgent call with American representatives on this.
He says it's disappointing and challenging for exporters, and while there are opportunities, tariffs aren't good for trade.
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Episode Transcript
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Speaker 1 (00:03):
Questions, answers, facts, analysis, the drive show you trust for
the full picture. Heather d Pussy on Drive with one
New Zealand let's get connected news talks.
Speaker 2 (00:15):
That'd be good afternoon. In something of a shock today,
we have been slapped with a fifteen percent tariff, up
from the ten percent we were expecting the Trump administration
administration to hit us with. Meanwhile, Ozzie has still managed
to stay on ten percent. Todd McLay is our trade
minister and with us. Hey Todd, Hey, Heather, what happened?
Did we do something wrong?
Speaker 3 (00:35):
Well, no, we didn't.
Speaker 4 (00:36):
I think it's just a very blunt formula that the
US president, President Trump has used. He's asked for a
list of all the countries that they have a trade
deficit with, ie, we sell them marginally more than we
buy from them, and he slapped fifteen percent or more
on those sorts of countries. Interestingly, Australia buys a lot
more from the US than they sell them and even
(00:57):
they got that ten percent last time. So it is
disappointing and challenging for some of our exporters. But there's
still opportunities in that market all but tariff rates are
not good for trade.
Speaker 2 (01:08):
Yeah, Were you guys too relaxed about this? I mean,
could you have tried to do something like the Aussies
did lifting the beef band, something like the South Koreans did,
offering to buy huge amounts of allergy.
Speaker 4 (01:17):
Well, no, South Korea has a fifteen percent as well
in twenty country. Yeah, but it's still fifteen percent as
opposed to as opposed to others, so they've got to
deal with there. There's been a lot of engagement. I
think you've seen Winston Peter's up in the US. I've
met with my counterpart a lot. Our officials have been
talking a lot, and you know, we've been working through this.
Speaker 3 (01:36):
But ultimately, there are countries there that.
Speaker 4 (01:39):
Actually have been engaging and negotiating and the same things
happened to them.
Speaker 3 (01:43):
I think it is just a blunt formula.
Speaker 4 (01:45):
You know, the President has been saying for a number
of weeks, you know, he's going to be lowering the
bottom tariff rate, and he has done that. Although you
are right, there's a couple of countries that, it seems
haven't had that happen to them. We've put in a
request for renurgent with my counterpart to be raising some of
these challenges and concerns and ask what we do from here,
(02:06):
because we would like to get that teriff fright back down.
But ultimately, I think what happens is the President of
America makes decisions and their system follows.
Speaker 2 (02:15):
Are you saying there are a couple of countries who
you would have expected to see go up to fifteen
percent and it hasn't happened.
Speaker 4 (02:21):
No, I'm saying there are some countries that have negotiated,
have got deals that have been on fifteen percent, and
again it's just those gone down to ten.
Speaker 3 (02:30):
Yeah.
Speaker 4 (02:30):
No, nobody's gone down to ten that I'm aware, unless
it had already been has already been announced. No, No,
what I'm saying the other way around, there are countries
that when it goes in and got deals and they.
Speaker 3 (02:38):
Still face ten percent as we do.
Speaker 4 (02:41):
And again it's just based upon whether or aren't you
bio sell more from the US to our trade deficit
with them as about five hundred million US dollars, and
you know that in the scheme of things of their economy,
it's just not significant at all.
Speaker 3 (02:54):
It's not that long ago.
Speaker 4 (02:55):
Actually, they had a very big trade surplus against US,
and well again quite and others are looking to buy stuff,
and so this stuff swings around a little bit. That's
the case we'll be making. But we'll be saying, look,
this is unreasonble, it's unfair. We didn't like the ten percent.
This is going to be harmful for US consumers as well.
The price gets passed on largely. And you know we're
making that case very very quickly.
Speaker 2 (03:17):
God, how much trouble in particular are our beef exporters in.
Speaker 3 (03:20):
Well, that's a very interesting one.
Speaker 4 (03:21):
The US doesn't have enough beef and they must import
because they don't produce enough of their own. So Australia
does have a lower tariff rate than we do. But
if you go back before the first announcement of the
ten percent, Australia was at zero because they have a
free trade agreement.
Speaker 3 (03:37):
So in the past in other markets.
Speaker 2 (03:39):
Yeah, but I don't know that any of this is
important because what we've got right now is Australia ten percent,
Uruguay ten percent, Argentina ten percent. Big beef exporters write
us on fifteen percent, Who's going to buy ours when
they can buy the beef from those countries and it's
good stuff.
Speaker 4 (03:55):
Well, I guess the point that I'm making is previously
we've either been at the same or we have had
better at access with that market, and they still do.
The thing that I'm told about our beef exports, number
one is that the majority of exports have been able
to pass that ten percent on. They'll need to look
at what that means with their contract and some of
they have said to me they'll be able to absorb
the extra five percent so they can still be in
(04:15):
that market. And the reason for that is actually, you know,
we're very efficient producers they need to keep.
Speaker 2 (04:20):
By God, if you compare ourselves to those three countries,
we're at a disadvantage now, aren't we.
Speaker 3 (04:26):
No question?
Speaker 4 (04:27):
Well the answer is no question at all. But we
have been against Australia as a disadvantage for tour before,
and we've also increased our access to that market to export.
So sorry, I'm not trying to paint the picture that
this is good news.
Speaker 3 (04:37):
It's not.
Speaker 4 (04:38):
But our exports are very good in the nimble and
I do think that the beef market, although it's going
to be challenging or need to be worked through, they're
still going to be good access and there for us
We'll be talking about that though, with the EU, with
the US, because it doesn't actually make sense when you
need product from around the world, but somebody has a
good trading nation has very very low tariffs against your exporters.
You know that you're putting the starts against them.
Speaker 2 (04:57):
Okay, mate, listen, good luck with it and thanks very
much for talking to us. It's Todd McClay, Trade Minister.
Speaker 1 (05:02):
For more from Hither Duplessy, Allen Drive listen live to
news talks. It'd be from four pm weekdays, or follow
the podcast on iHeartRadio.
Questions, answers, facts, analysis, the drive show you trust for
the full picture. Heather d Pussy on Drive with one
New Zealand let's get connected news talks.
Speaker 2 (00:15):
That'd be good afternoon. In something of a shock today,
we have been slapped with a fifteen percent tariff, up
from the ten percent we were expecting the Trump administration
administration to hit us with. Meanwhile, Ozzie has still managed
to stay on ten percent. Todd McLay is our trade
minister and with us. Hey Todd, Hey, Heather, what happened?
Did we do something wrong?
Speaker 3 (00:35):
Well, no, we didn't.
Speaker 4 (00:36):
I think it's just a very blunt formula that the
US president, President Trump has used. He's asked for a
list of all the countries that they have a trade
deficit with, ie, we sell them marginally more than we
buy from them, and he slapped fifteen percent or more
on those sorts of countries. Interestingly, Australia buys a lot
more from the US than they sell them and even
(00:57):
they got that ten percent last time. So it is
disappointing and challenging for some of our exporters. But there's
still opportunities in that market all but tariff rates are
not good for trade.
Speaker 2 (01:08):
Yeah, Were you guys too relaxed about this? I mean,
could you have tried to do something like the Aussies
did lifting the beef band, something like the South Koreans did,
offering to buy huge amounts of allergy.
Speaker 4 (01:17):
Well, no, South Korea has a fifteen percent as well
in twenty country. Yeah, but it's still fifteen percent as
opposed to as opposed to others, so they've got to
deal with there. There's been a lot of engagement. I
think you've seen Winston Peter's up in the US. I've
met with my counterpart a lot. Our officials have been
talking a lot, and you know, we've been working through this.
Speaker 3 (01:36):
But ultimately, there are countries there that.
Speaker 4 (01:39):
Actually have been engaging and negotiating and the same things
happened to them.
Speaker 3 (01:43):
I think it is just a blunt formula.
Speaker 4 (01:45):
You know, the President has been saying for a number
of weeks, you know, he's going to be lowering the
bottom tariff rate, and he has done that. Although you
are right, there's a couple of countries that, it seems
haven't had that happen to them. We've put in a
request for renurgent with my counterpart to be raising some of
these challenges and concerns and ask what we do from here,
(02:06):
because we would like to get that teriff fright back down.
But ultimately, I think what happens is the President of
America makes decisions and their system follows.
Speaker 2 (02:15):
Are you saying there are a couple of countries who
you would have expected to see go up to fifteen
percent and it hasn't happened.
Speaker 4 (02:21):
No, I'm saying there are some countries that have negotiated,
have got deals that have been on fifteen percent, and
again it's just those gone down to ten.
Speaker 3 (02:30):
Yeah.
Speaker 4 (02:30):
No, nobody's gone down to ten that I'm aware, unless
it had already been has already been announced. No, No,
what I'm saying the other way around, there are countries
that when it goes in and got deals and they.
Speaker 3 (02:38):
Still face ten percent as we do.
Speaker 4 (02:41):
And again it's just based upon whether or aren't you
bio sell more from the US to our trade deficit
with them as about five hundred million US dollars, and
you know that in the scheme of things of their economy,
it's just not significant at all.
Speaker 3 (02:54):
It's not that long ago.
Speaker 4 (02:55):
Actually, they had a very big trade surplus against US,
and well again quite and others are looking to buy stuff,
and so this stuff swings around a little bit. That's
the case we'll be making. But we'll be saying, look,
this is unreasonble, it's unfair. We didn't like the ten percent.
This is going to be harmful for US consumers as well.
The price gets passed on largely. And you know we're
making that case very very quickly.
Speaker 2 (03:17):
God, how much trouble in particular are our beef exporters in.
Speaker 3 (03:20):
Well, that's a very interesting one.
Speaker 4 (03:21):
The US doesn't have enough beef and they must import
because they don't produce enough of their own. So Australia
does have a lower tariff rate than we do. But
if you go back before the first announcement of the
ten percent, Australia was at zero because they have a
free trade agreement.
Speaker 3 (03:37):
So in the past in other markets.
Speaker 2 (03:39):
Yeah, but I don't know that any of this is
important because what we've got right now is Australia ten percent,
Uruguay ten percent, Argentina ten percent. Big beef exporters write
us on fifteen percent, Who's going to buy ours when
they can buy the beef from those countries and it's
good stuff.
Speaker 4 (03:55):
Well, I guess the point that I'm making is previously
we've either been at the same or we have had
better at access with that market, and they still do.
The thing that I'm told about our beef exports, number
one is that the majority of exports have been able
to pass that ten percent on. They'll need to look
at what that means with their contract and some of
they have said to me they'll be able to absorb
the extra five percent so they can still be in
(04:15):
that market. And the reason for that is actually, you know,
we're very efficient producers they need to keep.
Speaker 2 (04:20):
By God, if you compare ourselves to those three countries,
we're at a disadvantage now, aren't we.
Speaker 3 (04:26):
No question?
Speaker 4 (04:27):
Well the answer is no question at all. But we
have been against Australia as a disadvantage for tour before,
and we've also increased our access to that market to export.
So sorry, I'm not trying to paint the picture that
this is good news.
Speaker 3 (04:37):
It's not.
Speaker 4 (04:38):
But our exports are very good in the nimble and
I do think that the beef market, although it's going
to be challenging or need to be worked through, they're
still going to be good access and there for us
We'll be talking about that though, with the EU, with
the US, because it doesn't actually make sense when you
need product from around the world, but somebody has a
good trading nation has very very low tariffs against your exporters.
You know that you're putting the starts against them.
Speaker 2 (04:57):
Okay, mate, listen, good luck with it and thanks very
much for talking to us. It's Todd McClay, Trade Minister.
Speaker 1 (05:02):
For more from Hither Duplessy, Allen Drive listen live to
news talks. It'd be from four pm weekdays, or follow
the podcast on iHeartRadio.
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